Reddit may need to ramp up spending on content moderation, analysts say


A trader wears a t-shirt with Reddits logo at the New York Stock Exchange NYSE in New York City U.S. March 21 2024. REUTERSBrendan McDermid

A trader wears a t-shirt with Reddit's logo, at the New York Stock Exchange (NYSE) in New York City, U.S., March 21, 2024. REUTERS/Brendan McDermid

(Reuters) -Reddit will need to spend heavily on content moderation as it may face greater scrutiny as a public company, analysts said, threatening its longstanding policy of relying on an army of volunteers to maintain order on its platform.

The newly listed company warned in its initial public offering (IPO) paperwork that its unique approach to content moderation can sometimes subject it to disruptions like in 2023, when several moderators protested against its decision to charge third-party app developers for access to its data.

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