(Bloomberg) -- Reddit Inc. is partnering with several major sports leagues to bring more video content to the site in hopes of boosting advertising revenue.
The San Francisco-based social media company announced deals with the NFL, NBA, MLB, PGA Tour and NASCAR on Monday. The partnerships will bring more sports content to Reddit’s site, including video highlights from games and tournaments, behind-the-scenes clips, question-and-answer sessions with players, and special content from major events such as the Super Bowl and NBA All-Star game.
“Reddit is the go-to destination for sports fans around the world because it’s the place where they can dive deeper than anywhere else, and connect with other fans beyond the season and throughout the year,” Reddit Chief Operating Officer Jen Wong said in a statement. Sports is a major category for Reddit, with more than 1,000 communities dedicated to sports fans and 249 million posts, votes and comments on sports-related content each month, the company said.
Reddit shares gained 6.5% to $68.90 at 1:44 p.m. om New York. The stock had jumped 90% this year through Friday’s close. Financial details from the partnerships were not disclosed.
The move will give Reddit more high-quality videos, which in turn could lure more video advertisers. Reddit first tested those ads with the NFL during the 2023-2024 season, and brands like FanDuel, Samsung and Ford placed their messages next to premium video content from the league.
Reddit has invested heavily in its advertising business over the past several years, and went public in March after almost two decades as a privately held company. Reddit executives have been vocal about plans to expand the types of promoted messages on its site, including adding more video and shopping ads. Last year the company brought in sales of $804 million, 98% of which came from advertising. The text-based site currently hosts ads on a scrolling feed and next to posts within interest-based communities.
Reddit, which is primarily text-based, has been slower to adopt video ads than rival sites like X, formerly known as Twitter. X started expanding into video as early as 2016, and video ads eventually became a $1 billion business for the site, JMP Securities analysts wrote in a note. JMP predicts Reddit could also generate more than $1 billion in sales from video ads.
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