Reddit, a platform built on the idea of open and widespread information sharing, is set to introduce paywalls. In a video Ask Me Anything (AMA) session with CEO Steve Huffman following the company’s quarterly earnings report (which was underwhelming), Huffman announced that Reddit is actively testing ways to make certain content accessible only through payment and plans to launch a “paid subreddit” feature later this year.

Huffman explained that the paid content model is still in development but mentioned it would be one of the “new, key features” the company aims to introduce in 2025. This move aligns with Huffman’s focus on monetizing specific areas of Reddit. Last year, the CEO stated that the company was exploring the creation of a new type of subreddit featuring “exclusive content or private areas” behind a paywall.

Since going public, Reddit has been exploring various monetization strategies to deliver returns to its shareholders, often at the expense of user experience. A common complaint among Reddit users is the overwhelming number of ads they encounter, particularly on the platform’s first-party mobile app. Additionally, Reddit has entered licensing agreements with both Google and OpenAI, allowing these companies to use Reddit content to train AI models.

However, paid subreddits wouldn’t be Reddit’s first foray into premium features. The company has been offering Reddit Gold, a subscription service, since 2010, which provides users with ad-free browsing and access to the exclusive r/Lounge subreddit. Nevertheless, Reddit Gold has not been a significant revenue generator for the platform.

Reddit will need to consider several complexities when implementing paid subreddits. Firstly, most content on Reddit is aggregated, and the company has invested in initiatives like the Reddit Contributor Program to incentivize original content creation. Furthermore, paid subreddits may require a different moderation model, as volunteer moderators may be hesitant to oversee content that generates revenue they don’t receive.

Reddit might find an opportunity to compete with Patreon’s model by allowing creators to put certain content behind paywalls. Many creators already have their own subreddits for community discussion, which could be a more engaging alternative to Patreon’s comment system. This could be a chance for Reddit to tap into that market.