Sports rights have recently become a hot topic in the digital content world, and Reddit is no exception. It recently announced a series of relationships with the NFL, NBA, MLB, PGA TOUR, and NASCAR. By partnering with the organizations, Reddit claims, “redditors will gain access to video highlights from games and tournaments, player AMAs, behind-the-scenes videos, and more special content posted by the leagues throughout their seasons and including during major events like Super Bowl and NBA All-Star.” And what will Reddit receive?
A major purpose of this new cooperation suite is for Reddit to be able to sell lucrative ads alongside the leagues’ content. According to The Information, the company will share the money from those commercials with the leagues. Reddit claimed in its announcement post that it has already pilot-tested this product with sponsors including Samsung, Ford, and Volkswagen during the NFL’s 2023-24 season. All three companies witnessed increases in purchase intent, brand favorability, and awareness, according to the report, which did not disclose specific starting numbers. Enticing advertisers is critical for Reddit because, while it reduced its loss gap and increased revenue 21% in 2023, it is also now a publicly traded corporation with many of its own users as stockholders. It needs other ways to draw in cash, including harnessing rabid sports.
