Reddit's Future: AI and Data Licensing

In this conversation, Tanay Jepper shares with Erik Torenberg his insights on Reddit, the potential of Reddit as a data licensing business, and its growth prospects and improvements for Reddit, including focusing on mobile app usage, leveraging AI for search and summarization, and investing in tools for advertisers.

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✨ Key Takeaways

• Reddit is a global forum for the internet, allowing users to create communities for any topic.

• The platform's pseudonymous network enables users to build credibility without revealing their real identity.

• Reddit's success lies in its authentic and engaged user base, driven by self-moderation and community involvement.

• The platform's intent-based advertising model and unique data licensing opportunities contribute to its revenue growth. Licensing data from platforms like Reddit can provide valuable structured data for model training purposes.

• The bull case for Reddit includes user base growth, ad revenue potential, and revenue growth from data licensing.

• Improvements for Reddit include focusing on mobile app usage, leveraging AI for search and summarization, and investing in tools for advertisers.

• Competition and user growth challenges are potential risks for Reddit, but its strong network effects and unique content make it resilient.

• Unbundling Reddit and building niche vertical applications or custom networks for popular subreddits could be a potential strategy.

• WallStreetBets and the meme stock phenomenon have impacted Reddit's stock trading, but it has not traded as a meme stock yet.

• Compensating moderators can be done through subscription products or by providing customization features for communities.

• The story of Reddit highlights the long journey of building a successful company and the potential for future growth.

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🔗 Links:

Tanay's Newsletter: https://www.tanayj.com/ 

Wing Venture Capital: https://www.wing.vc/

⏲️ Timestamps:

TIMESTAMPS:

TIMESTAMPS:

(00:00) Intro

(03:21) What Reddit Got Right

(07:42) Reddit's Unique User Base

(11:48) The Future of Reddit: AI, Data Licensing, and Potential Growth

(20:14) Sponsor: Brave

(20:51) Reddit's Journey to IPO and Its Market Dynamics

(24:29) Creating Valuable Data

(28:29) Bull Case and Bear Case for Reddit

(31:19) Improvements for Reddit

(34:04) Unpacking Reddit's R&D and Efficiency Opportunities

(38:15) Competition and Risks

(43:36) WallStreetBets and Meme Stock

(46:10) Reflecting on Reddit's Long-Term Journey and Impact

(48:38) Wrap

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