The Era of Open Reddit Browsing May Be Coming to an End
The company will test limited unauthenticated access in select markets outside the U.S. in the fourth quarter.
Reddit CEO and co-founder Steve Huffman announced that the company will test a new format and assess which content will remain available to unregistered users. The timeline for a global transition to a fully authenticated mode has not yet been determined.
Unauthenticated access may be restricted for link-based content, search results, and the homepage. Huffman linked the changes to more precise ad targeting and protecting posts from being scraped by third-party services. Chief Operating Officer Jen Wong stated that over 80% of Reddit's monetization comes from authenticated users and the app's audience.
In the third quarter, Reddit's revenue grew by 53%, and the number of unique active users worldwide reached 130.3 million. In October, search traffic declined by an average of over 1 million visits per week; if the trend continues, the company may lose a significant share of its audience. Following the report's publication, Reddit's shares fell by more than 17% in over-the-counter trading.
