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Do You Think There Would Have Been a Large Protest if Steve Huffman Just Said We're Charging to Use the API to Increase Revenue? (beehaw.org)

submitted 1 year ago by [email protected] to c/[email protected]

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I've been a long time Redditor and an Apollo user for about a year. I even paid for it. The main draw for me was the lack of advertising. In the back of my head I kept thinking that it couldn't last. Reddit is losing revenue from the lack of advertising views. It didn't

To me, Reddit's sky high pricing for the use of the API is intended to kill off apps like Apollo and for its users to move to the advertising filled web site or its own app, which I've never used.

If Huffman came out and said this was a revenue move right off would everyone be as upset as they are? Are people upset because Huffman completely mishandled the move or because they got their ad free experience turned off? If Reddit had an app the same quality as Apollo only with ads, would they be OK with it. I've only used Apollo so I can't speak to the other apps.

I can't blame Reddit for wanting to make money. It doesn't make a profit. Investors have to keep pouring in money to keep it going. They're going to want to see a return on their investment at some point. Usually they cash in on an IPO, but IPO's are generally only successful if the corporation looks like it will be profitable or at least the stock price continues to go up. That's how capitalism works.

In my case, I probably would have left regardless. I can't stand adds in my feed. I probably wouldn't have heard of lemmy or kbin if there hadn't been such an uproar. So I'm glad it went the way it did.

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[–] MagicShel 5 points 1 year ago (1 children)

A user on a third party app isn't as valuable to the company. They miss out of all the valuable spying and tracking they can do by installing their own software on your phone. Plus just the presence of this party apps means you can't demands extra permissions on your own app and tell users to deal or suck it (in nice PR speak). So it makes sense to charge TP apps more for reducing the "value" of a given user.

Charging less is basically subsidizing third party apps out of your own pocket - which was exactly the complaint in the first place. Although it would've been better to gradually ramp up prices to less-subsidized and eventually to a profitable partnership.

[–] [email protected] 2 points 1 year ago

The counter-argument is that the users that gravitate towards those apps are less valuable anyways (we were the first to jump ship for e.g.) so a discounted rate just to keep them around and contributing/adding value for the "whales" on the official app.