Reddit is enhancing its platform with more sports content through agreements with major leagues, including the National Basketball Association (NBA) and the National Football League (NFL), to attract increased advertising revenue.
This development resulted in a 4% rise in Reddit’s share value. The deals also extend to Major League Baseball (MLB), the PGA Tour, and the National Association for Stock Car Auto Racing (NASCAR), potentially enabling Reddit to capitalize on the dedicated fan base and star power of these sports to boost its revenue, the social media platform revealed in a blog post on Monday.
Reddit users will gain access to a variety of sports content, including:
- Video highlights from games and tournaments
- Behind-the-scenes videos
- The popular “Ask Me Anything” (AMA) format
- Other content posted by these leagues
Chief Operating Officer Jen Wong noted that major sports leagues recognize the opportunity to engage global audiences on Reddit. She added that the company continues to develop more ways for organizations to interact with communities on the platform.
Reddit reported that its platform received 20.4 billion screen views from communities in the sports category over the last 12 months, reflecting a 26% increase compared to the previous year. Since going public in March, Reddit has been actively seeking methods to diversify its revenue streams.
Earlier this year, Reddit signed agreements with OpenAI, the maker of ChatGPT, and Alphabet’s Google, allowing these artificial intelligence models to train on Reddit content.
Reddit, which gained significant attention during the 2021 meme-stock frenzy, reported a 48% increase in first-quarter revenue in May and indicated the potential to post an adjusted profit in the second quarter.
Featured Image courtesy of Anadolu via Getty Images
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