The agreement with major sports leagues

Having entered partnerships with Google and OpenAI in February and May respectively, Reddit has announced a new partnership with top sports leagues including the National Football League (NFL), the National Basketball Association (NBA), Major League Baseball (MLB), the PGA TOUR, and National Association for Stock Car Auto Racing (NASCAR). 

With this agreement, Reddit looks to boost its revenue streams and enhance engagement for its communities.

From the financial perspective, it intends to increase ad revenue and capitalize on the growing sports content market, which has developed by 26% year-over-year. With over 1,000 active sports communities and 20.4 billion screen views in the past year alone, Reddit provides an engaging community for sports fans. 

The partnership seeks to also improve the experience for users within the Reddit communities. Reddit’s Chief Operating Officer, Jen Wong, emphasized the platform's ability to create better fan engagement. “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,” Wong said. 

What’s in for Redditors? 

This deal with sports leagues will expose users to access to premium sports content. Here's a look at what these partnerships will bring and how they will enhance the sports experience of sports lovers on Reddit:

Game and match highlights

Redditors will be able to catch up on all the crucial moments of an NBA game without having to scroll through countless sources. Users will be able to watch video highlights from major sports events. For instance, if you missed a spectacular moment in an NFL game or a game-winning home run in an MLB match, you’ll be able to watch the highlights directly on Reddit. P

Behind-the-scenes footage

Ever wondered what goes on behind the scenes during a sports event? With Reddit’s new sports content, users can watch and learn about the lives of athletes and the workings of major sports leagues. 

For example, you could watch a behind-the-scenes video of a PGA Tour player preparing for a big tournament. 

Interactive fan-player sessions 

The partnerships will enable users to interact with players and engage in “Ask Me Anything sessions.” Sports fans can ask their favorite players questions and receive real-time answers. 

For instance, users can get to find out first-hand from players about their training process, most memorable games, eating habits, or other interesting parts of the athletes’ lives. 

How does it benefit Reddit advertisers?

Advertisers can position their marketing campaigns with high-impact sports content to promote brand awareness and reach. This can be similar to successful campaigns seen during the NFL’s 2023-24 season which enhanced brand awareness and led to positive purchase behaviors. 

Implication on stock performance

Reddit’s new initiative is already impacting its financial performance. Following the announcement, Reddit's shares surged nearly 7% according to Quartz.

The platform's focus on sports content aligns with a growing trend in the sports marketing industry, projected to surpass $55 billion in value by the year 2030.