Reddit delivered strong earnings, but the numbers beneath the surface tell a different story. Slowing logged-in user growth and AI-powered search could threaten the platform's long-term value.
Google licensed Reddit’s content to improve AI-generated search summaries. Those summaries frequently answer users’ questions by drawing from Reddit discussions without requiring users to click through to Reddit itself. The arrangement generates licensing revenue, but it may also reduce opportunities to convert casual visitors into engaged, logged-in users who ultimately become more valuable advertising customers.
All reddit ever needed to do was leave it’s users alone and build a functional in house search…
Like, there was a solid decade when I needed to figure something out, I’d search Google and tell it to only provide results from reddit.
If they had licensed a search engine like Google, they’d really have been “the front page of the internet”.
It was that fucking easy, instead they did the opposite and let Google use their data without anyone going to reddit or probably understanding the info came from reddit.
lol, yeah, that was a predictable outcome.
We must cannibalise long term sustainability for short term quarterly growth! It is the only way.
All reddit ever needed to do was leave it’s users alone and build a functional in house search…
Like, there was a solid decade when I needed to figure something out, I’d search Google and tell it to only provide results from reddit.
If they had licensed a search engine like Google, they’d really have been “the front page of the internet”.
It was that fucking easy, instead they did the opposite and let Google use their data without anyone going to reddit or probably understanding the info came from reddit.
They are also increasingly banning anyone and any sub that is “controvercial.”