Reddit plans to require login for all users

Reddit intends to shift toward a "logged-in only experience," with testing set to begin in regions outside the United States before a worldwide rollout. The move comes as the platform grapples with significant losses in search engine traffic driven by the rise of AI-generated summaries.

During an investor call, CEO Steve Huffman revealed that Reddit lost approximately one million search referrals per week on average in October. He attributed this decline to changes in how Google operates, noting that the search giant now frequently provides AI-generated answers directly in search results rather than directing users to Reddit threads and other web pages. "Google has really shifted in their relationship with the rest of the internet," Huffman stated.

Despite the search traffic decline, Huffman emphasized that over 80 percent of Reddit's revenue already comes from logged-in users and app-based access. The company plans to position itself as a "direct daily habit" that functions independently of search engine referrals. To achieve this goal, Reddit is investing in algorithmic feeds, enhanced app design and performance improvements, AI-powered moderation systems, and new features including games and visual podcasts—a feature that uses generative AI to convert posts into video content.

The transition to a login-required model will also serve to "protect access to Reddit's extremely valuable corpus of data," according to Huffman. This protection is particularly relevant given Reddit's existing AI training partnerships with OpenAI and Google. During the investor call, Huffman indicated the company is engaged in "active discussions" regarding these arrangements and will make decisions based on what benefits Reddit strategically and economically, though no new announcements were made.

Reddit's financial performance remains strong in some respects. The platform reported 53 percent year-over-year revenue growth in its third quarter and achieved 16 percent growth in weekly active users. However, investor confidence wavered following the announcement of a lower-than-expected forecast for the upcoming quarter, resulting in a decline in the company's share price.