However, Reddit's actions have left a lasting impact on the company, especially as the internet is undergoing a significant shift. Users are turning to alternative means of getting information, like AI chatbots, and decentralized social networking platforms, like Mastodon and Bluesky. Smaller efforts to offer decentralized alternatives to Reddit are also gaining momentum. Reddit's S-1 filing does not acknowledge these potential threats, beyond stating that influential users or certain demographics could find alternative products or services that better meet their needs.
Key takeaways:
- Reddit's IPO is approaching, but the company's S-1 filing does not fully address the complications that arose from changes to its developer platform and API pricing, which led to site-wide protests, traffic declines, and stability issues last year.
- Reddit's API pricing changes were part of a broader plan to lock down its user-generated content, which has been used to train AI models. The company has made $230 million so far from licensing its data to other companies.
- There is a growing movement to decentralize social media, which could pose a threat to Reddit and other centrally managed platforms. Decentralized social networking platforms like Mastodon and Bluesky are gaining popularity.
- Reddit's S-1 filing downplays the potential for community unrest as a result of its management decisions and does not acknowledge the broader movement around decentralizing social media.