Reddit is now generating significant revenue from content licensing agreements, accounting for about 10% of its total income. According to COO Jen Wong, this represents material value for the company despite being a relatively small portion of its overall earnings.
The platform reported a substantial 71% year-over-year increase in fourth-quarter revenue, driven largely by these licensing deals. Reddit has been selective in its partnerships, opting only to work with companies that can agree to specific terms crucial to the platform’s interests.
So far, Reddit has signed content licensing agreements worth $60 million with Google and OpenAI, the parent company of ChatGPT. The company’s approach emphasizes cooperation with partners who share its priorities.
Source: https://www.adweek.com/social-marketing/ai-licensing-deals-with-google-and-openai-make-up-10-of-reddits-revenue