Reddit is preparing for a significant change in its content access policy. The company plans to test a new model that requires users to log in to access content.
Reddit CEO Steve Huffman stated that the practice will initially be tested in select markets outside the US. According to Huffman, the logged-in user experience has become more critical for the future of the platform.
This move by the company is linked to a decline in referral traffic from search engines. Reddit reported a decrease of more than 1 million weekly referrals from search engines in the last quarter.
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Huffman said that Google's AI-powered summaries no longer generate traffic for Reddit as they once did. Company management believes that this shift in how internet users access information directly affects the business model of platforms.
It is stated that the new strategy is not only a response to traffic loss but is also linked to Reddit's goal of protecting its data assets and increasing user engagement within the platform. A login requirement could also enable the collection of more data signals for ad targeting processes.
The company is also focusing on steps that could make user logins more necessary to comply with age verification regulations becoming widespread globally. Reddit is seeking a balanced model for how to direct users arriving via link sharing or search results.
It is also reported that the data licensing agreement Reddit has with Google, which is said to be worth approximately 60 million dollars annually, could be re-evaluated during this process. Huffman emphasized that such agreements must be consistent with long-term strategy and involve a fair exchange of value.
Other topics on the platform's agenda include making the main feed more organized and consistent, as well as an incognito mode option that can respond to users' privacy expectations.
News Source: 12punto
