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.
The thing that I’ve seen pretty consistently from both RIF and Apollo devs is that they’re not disputing the fact that reddit needs to start making a profit. Nobody’s (seriously) complaining about what was free becoming not free.
The fact is, if this was purely about money, they’d be willing to negotiate on price. The price they’re asking is ~70x more than imgur, which hosts images WAAAAAY heavier to host than text, and links etc.
If it was solely about showing ads, they could have given 3PAs access to reddit ads via the api, and enforced showing them.
There are several ways this could have worked for everyone.
Reddit wanted to kill 3PAs. That’s the only logical conclusion here. Hell, if they’d come out and said THAT, as well as fixing the problems with their own app first, I might even have been able see their side of it. I would still be pissed, but it’d be more understandable than this very blatant Twitter-esque death-by-pricing thing they’re trying to do.
The reports were that the amount they are asking 3PAs to pay is 29× the revenue that they would make from a user in advertising. Astonishing.
But I agree. If they had started this out simply by saying “no more 3PAs except for approved accessibility-focused apps”, the protest would never have been able to get the steam it did. That statement would have cut the legs out of the accessibility-focused concerns (even though it doesn’t actually adequately address VI users’ needs). It would have removed the possibility for the huge drama that happened with their awful communication with and lies to 3PA devs. It would have completely mitigated bot devs’ concerns. And it would have made the NSFW issues completely moot. With those issues addressed, there would have been nothing for the protests to really hook on to in quite the same way.
The price they’re asking is ~70x more than imgur, which hosts images WAAAAAY heavier to host than text, and links etc.
The apollo dev got a very discounted price for the imgur api. Still, general imgur prices are about 3-4 times cheaper than the amount reddit is asking for now. That is if you stay in your quota. Exceeding the imgur quota costs about $1 per 1000 read requests, though. The value talked about for reddit is a flat rate of $.24/1000 or ~$1/3000 requests, no discounted plans are known to me.
The fact is, if this was purely about money, they’d be willing to negotiate on price.
That still holds true, though.
I haven’t heard anyone say that they’re upset because Reddit needed money. Actually I’ve heard more understanding people, they wanted Reddit to stay alive and were willing to possibly say yes to subscriptions/ad based content.
But spez completely shit the bed on the entire thing. Giving them the crazy high prices, the incredibly short deadline, hiding the pricing for those 2 months, then trying to blame it on AI, and just everything. Yes, if they had a level headed leader at the front of their corporation I could very well see myself preparing to pay a couple bucks a month to Reddit to get a good experience, they could get their “Residual Income”.
Instead he had to go all megalomaniac and demand everyone bend to his will - and I left permanently.
I used to pay for a reddit gold to support the site because Ai (naively) beloved it was a worthwhile investment in a website that connected disparate, niche communities and served as a repository of knowledge.
Don’t I look like an idiot now. Fuck u/spez
Yup, same. Paid for premium to avoid ads. Have now canceled and poking around Lemmy and Mastedon to fill the niche.
Once my reddit gold ran out from buying Alien Blue, I’ve been paying for it ever since, since I wanted the site to succeed, and I never saw any of the ads. It felt like the right thing to do, but once all this shit with spez being a total dick went down, I cancelled my autopay, so it won’t renew again.
Take that money and contribute it to a worthwhile cause on this instance. :)
We all did.
Take that money and contribute it to a worthwhile cause on this instance. :)
Yep. The headline could have been “Reddit to start charging for Premium if users want to use third party apps” and it would’ve been and gone in a day or two.
Instead, Huffman’s ego stepped in and he gave media cycle red meat with how he’s handled this. The story now is how aggressive, dishonest, and incompetent he looks. I think there’s a lot yet left to be written about a tech company that relies entirely on the health of its community treating members of that community so poorly and so openly attributing that to $$$.
well shoot. this sums it up so well, there’s nothing to add.
Exactly. I was planning to just migrate to their official app after July 1. I mean yes the app may be an ad filled shitty experience but such can be said as well for Facebook and Instagram. Companies need money and I am perfectly fine with that.
It’s Huffman’s AMA that made me actively seeking Reddit alternatives. It was that bad.
The other side of it for me was I didn’t want to deal with the inevitable increase in data collection that Reddit signaled it would be doing to increase ad revenue
If Reddit just charged the AI people for API access and left 3rd party apps alone I doubt anyone would have given a shit, but they had to go and two-birds-with-one-stone it. Then they insisted on digging their hole deeper by running their mouths and making the situation worse.
I suspect they have signed an exclusivity deal with some kind of third party to use the API. It could be for “AI” or it could be for more nefarious purposes.
That’s why it’s important to go back thru our comment history and replace them with linguistic garbage. To ensure Reddit can’t profit off our donations. I’m not in the business of subsidizing Reddit, after all.
“Plonked up behind the radio them ready the plastic manuscript who observe Jerry’s can.” Or whatever.
If I were implementing this nefarious Reddit I probably wouldn’t have edits wipe out the original data. It’s certainly not necessary to implement edits that way.
In fact, the editing log itself can be used as more data.
We actually know for a fact they don’t do it that way, since Reddit has already been caught undoing peoples “delete” edits after they’ve gone
Maybe a script that uses ai generated content. If done at scale it will destroy their output due to inbreeding.
OpenAI CEO Sam Altman sat on the reddit board for years and was briefly CEO for 8 days.
OpenAI is another dumpster fire waiting to happen, then.
Why else would they make access to OpenAI/ChatGPT/etc so cheap? So others can build businesses on the tech that get locked in before they jack up the price.
We’ve seen this rodeo plenty of times now.
Spez knows he can create ‘traffic’ of user comments and answers with AI. He also knows he can use AI to moderate subreddits. He doesn’t care about the quality of the site, just the numbers that get him his payday. He’ll burn it to the ground and cash-out, leaving a mess in his wake.
They would have gone straight to scraping if they couldn’t reach a deal. Sam Altman is on the board of reddit. He knows which way the wind blows there.
LLMs are already relying on web scraping and always have. They are getting data from the entire Internet, do people really think OpenAI is doing individual integrations with every single website throughout the Internet?! Are Google and Bing doing that, too?
It’s complete FUD.
do people really think OpenAI is doing individual integrations with every single website throughout the Internet?! Are Google and Bing doing that, too?
This is such a great point that I hadn’t even considered. These API changes will have exactly zero effect on LLM’s and similar services.
There may be some complexity with legality here though. Obviously Google and other search engines already have most of Reddit’s content indexed, but there are some legal arguments as to whether they can use the content to create derivative works.
If Reddit opens up its API and specifically allows AI companies to use the content to create LLMs and other AI tools then from a legal point of view they may find this much more preferable to facing potential legal action further down the road.
The ai people aren’t using api
Since spez said that one objection was that other people were making money where reddit wasn’t, one thing I’d have been okay with is if the API worked only for those who were reddit premium. (To be open, I was already paying for the lowest tier of premium.)
Although this is a reasonable solution, it’s also reasonable to just let the apps charge a subscription and pay the API fees, which is what the app devs planned. The only issue is that Reddit set their API fees so high that the app devs can’t possibly charge enough to make it profitable, certainly not in the time frame they were given.
The controversy started when their API fees were astronomically high as to constructively end all 3rd party apps.
I think the real anger started when Steve Huffman lied about the Apollo developer and the dev started posting the recordings to prove that Huffman was lying through his teeth.
After that, Huffman stepped onto multiple rakes as he does a poor job of crisis management. They don’t know where the value from their product comes from.
I used reddit 10x as much as Netflix, if not more. So I’d have been more than happy to pay the same price for all eternity to access the api.
Hell they could have given out individual api keys tied to usernames so that regardless of the app, you’d be fed input from the free tier (with ads & rate limiting) or pro tier (unlimited and no ads). That would also help to curb malicious bots and reduce the number of alts in the game.
But no, they chose the nuclear option and are now choking on the fallout. And Huffman’s erratic and hostile response further down the line really sealed the coffin for me.
The protest is not about the fact that they are charging for it. The protest is about the fact of how much they are charging for it. When compared to imgur the rates are absolutely insane.
I keep seeing this incorrectly reported and it drives me crazy. No developer is upset about Reddit charging for the API access. What they are upset about is the fact that Reddit has jacked the price of that API access up so high that no third party apps could ever afford to use it.
At this point of time though, it has grown to be less about that though, and how disrespectful Spaz is treating everyone. Even if he reversed his decision, who can trust the guy now?
He’s made it clear that even if you spent the last 10 years working on promoting your community making it successful, that he’ll happily ban your account and hijack your community, for a silent takeover. There are some serious shadow government vibes happening.
Given the way Spaz lied about the Apollo developer, even if API access was only $1 per month I wouldn’t pay anymore (because I don’t feel Spaz should have the money)
I understand that, but framing it as “reddit users are mad because reddit wants to charge for API access” paints reddit users as entitled, when what is actually happening is “reddit users are mad because reddit decided to charge for API access with only 30 days notice and set the prices so high that third party app developers would have to pay potentially millions of dollars per year in order to access it”.
There is a massive difference between those two statements. One makes reddit users look like a bunch of entitled assholes, and the other frames the situation correctly and truthfully.
I agree in many ways… Good or bad phrasing though, I think mostly everyone is on the same page. I also love the fact here that its easy to avoid toxic admins or communities, so we’re no longer controlled by whatever makes reddit profit (and admins can do what’s right instead)
While essentially killing off 3rd party apps is disappointing, I could’ve understood and been willing to switch to the official app and maybe even pay monthly for no ads and more features.
What made me leave is how poorly Huffman and the company treated the developers, moderators, and users.
For developers:
- Reddit went back on their word about no API cost changes this year
- Lied about making the API cost reasonable
- Gave developers very little time to adjust
- Treated developers and their apps as freeloaders instead of as a source of growth for Reddit when they didn’t even have an app yet
- Blatantly slandered Apollo’s developer
For moderators:
- Reddit treated moderators as if their input didn’t matter despite providing free labor for the site
- Framed them as being power hungry for disagreeing and protesting Reddit’s decisions
For users:
- Reddit treated users as if their input didn’t matter despite Reddit being a user-generated content site
- Treated their contributions to the site as Reddit’s property, not their own
- Essentially said users are just a bunch of whiney babies who are powerless, have no willpower, and will visit the site no matter what we do
Also, even besides Huffman showing his true colors as being a total asshole, it just makes Reddit’s poor leadership SO evident. How do you become such a popular site with free content and free moderators, and still can’t make money? How do you manage to turn a great Reddit third-party app into a buggy mess of an official app? Why are you constantly prioritizing what you think users want instead of just listening to them? And now you essentially just told all of us: “fuck you, I own you and your content, and I am entitled to to make money off of you.”
If I put on my tinfoil hat, I think Reddit might have a long-term plan here.
-
Hike up the API price to a point where 3P apps like Apollo will have to shut down, making them worthless, after so much was invested in them
-
Get users upset with the lack of features on the official app
-
Make the 3P app developers look like bad guys
-
Wait a month or so
-
Publicly offer to buy a popular, and now worthless, 3P app ^for way too little money^, in order to use the features for the official app
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Point out that the 3P dev is a monster if they don’t sell, since it would help users so much, and Reddit is a Community, after all
Large corporations regularly buy up small firms to get their product. You may be less tin foil hatty than you think on that one.
They couldnt do this because apollo dev already offered to sell apollo for 10m, half the cost it would have costed them for continued api usage.
The precedent is already there to buy one and reddit missed it.
If you are to believe that Reddit is setting the API pricing as high as proposed to eliminate 3rd party apps, rather than to recoup costs of allowing their existence (which I wouldn’t put it past them to lie like that to make it sound more palletteable), then it’s reasonable to believe Apollo’s existence doesn’t cost them 20M$. In fact I’d be surprised if it even costs them the 10M$ figure because Reddit’s reaction implies a number that high must be extortion.
Didn’t they buy alien blue before that?
It was the most popular, before Apollo even existed I think.
They bought that, turned it to shit despite it starting from a beloved, yet now unrecognizable mess. Even if they bought Apollo, RIF, Relay, Sync and Baconreader tomorrow, their goal with the site conflicts with what people enjoy about using it and anything they do will be shittier and shittier.
People would always flock to another community focused app as long as that’s a possibility, so they decided to nuke the whole concept.
they hurt themselves here though because Apollo’s dev gave them the buyout option and they said he was trying to extort them. I doubt any of the app developers would be too keen on this now without covering their ass to pretty extreme extents
From a game theory of greedy agents point of view, what is the number value of a worthless app? As in, if Reddit offered to buy Apollo for $1 right now, what greedy reason would there be to refuse?
“How can I trust you to even give me the $1 if you resort to slandering my character?”
-
And to pile on top, Reddit has been around since 2005. Why is there a SUDDEN and sloppy push towards profitability? It’s like someone clued them in just recently that an IPO means you’ll have to publicly show profit/loss. The way they’ve gone about it suddenly and sloppily doesn’t scream long term plan, but instead a crash change.
Excellently said! Can I nominate you to represent me in the fediverse?
Thank you! Sure, I’ll do my best lol.
Mostly the same feeling. Was surprised how he “communicated” with mods, who helped Reddit to grow a lot.
I think there’s a lot they could have done better. They could have injected ads into the API feeds directly so they could still get revenue and make it part of the terms that a client can’t remove them, and offer a paid version of the API that doesn’t have ads. That could work with the clients who could then continue to offer a free ad supported version or a subscription that removes them with Reddit getting a cut. I would have been totally understanding of that and reddit could have gotten a ton of subscription revenue by leveraging the existing distribution channels.
They’re a company, they have to pay the bills, I get that, but they went over the line with their deception, greed, and hunger for power. This wasn’t just about making money, it’s also about control. This was all just an underhanded move to kill 3rd party apps without outright banning them. They want total control so they can continue to make ui decisions that make then more money at the expense of the user experience with their users not having an alternative client to go to. They clearly don’t have any respect for their users so why would I use them?
Notice how Reddit haven’t engaged in any positive damage control at all? It’s just been hit pieces against devs, an AMA with completely canned responses and unprecedented wide-spread hostile action against it’s content creators/power users/mods?
Reddit is in full-blown sell out mode right now and nothing but money matters anymore. It’s all down hill from here.
Yeah, I don’t care about third party apps or API anymore. Their handling of it became very clear that they are headed in the direction of a Zuckerberg run type multi billion dollar company fully monetizing and extracting data from users, so I don’t feel like using their sketchy app like I would never use a Facebook app or Tiktok app, or make an account for either of those two. And don’t want to provide location based behavioral data they get from ip addresses and what type of interests I’m into so they can sell that type of demographic data to companies.
People share way more on reddit than they do to people they know because of pseudonyms, so yeah I don’t want to directly provide anymore than I have to towards the profits of a large corporation.
It does certainly seem like it, but what exactly are they trying to achieve? They don’t have an IPO yet and even if they got one now it would be devalued over before the shit show. And with every new day reddit shows potential investors that they have absolutely no control of the situation, and just doubles down on idiocy.
How is it supposed to make money at this point?Ad revenue should convince the investors. Who cares if there’s no real content besides automated reposts and bot spam, as long as there are some users who they can shower with an endless stream of ads.
Yeah, and with ip logs and ad click throughs and people also providing comments that can form a personality type that type of data can be useful to marketers to see what people with certain interests go on to buy. Add downloading the official app on smartphones with the permission requests, and that’s even more data to provide. Especially if the app is able to get info like your email address or phone to then connect to a public directory.
Memory is short on the internet. Reddit are hoping for this to blow over “quickly” (i.e. in a month or two) because they know the bulk of their users will continue to show up (out of inertia or a lack of viable alternatives). If they can keep the front page showing decent posts, they think they’ll make it through.
I think the knock-on effects of losing mods and “power users” will take some time to play out. The real long term effects won’t be known until it becomes clear that the loss of those key users has effected the quality of the posts and therefor usage by your “average Redditor.”
Like others have said, there are multiple factors at play:
- The official reddit app sucks in terms of basic usability
- The offiical reddit app has poor accessibility
- The official website, while generally well optimised for mobile, keeps forcing users to use the reddit app - see point 1
- Reddit is trying to position themselves as an ad company (see here for one user’s explanation), so it’s in their benefit to get people using the mobile version where they can hoover up sensitive information for serving ads.
- Reddit are trying to grow their ad platform. Third party apps interfere with that. Reddit understandably wants to kill them off.
- Reddit are aware that people like third party apps and people don’t like their official app.
Now, if Reddit had been honest and transparent throughout the entire process and just killed off the APIs without charging for it and gave the straightforward explanation, I think people would be sad as they are emotionally invested in their apps, and there would be some people who would go for good. But a lot more people would come back to Reddit - let alone seek alternatives like Lemmy, KBin, Tildes, etc.
What has happened is that the CEO has tried to make apps “the villain” and reddit the “poor little company” - sort of like DARVO but for 3rd party apps, so they could paint their official Reddit as the “wholesome” one.
Except the reddit community is large and pretty smart - technically and legally too. Receipts were kept, the CEO was exposed for his blatant lies, and then he has become incredibly unhinged and angry that things haven’t gone his way, giving incredibly aggressive interviews. And the Reddit community notices, because whenever Reddit is in the news, it’s very rarely for a good reason. The CEO was shown to be wearning no clothes after all.
I’ve seen Reddit go through drama, but never quite like this. It’s quite incredible and astonishing how one person could fuck up a transition this badly. Spez has repeated that the Automod is going to be killed, but given the blatant lies that came before, it’s no wonder why folks aren’t trusting him on his word. He’s made his bed, he has to lie in it.
Reddit isn’t an ad company, reddit is a sock puppet company. They are selling the ability to control the narrative.
They seem to have failed miserably at controlling it
For me it wasn’t about the money, I pay for plenty of things in order to escape ads. The CEO all but came out and said that they don’t care about anything except money… That’s just business and I understand it, I don’t like it, but I understand it.
The issue I saw was Reddit made no attempt to understand the situation third party app devs were in, or to honestly work with the devs to find an equitable solution. That much has been clear before the CEO began to gaslight both the devs and the users about it.
There would have been no outrage if Reddit valued its users. If they came out and said they were going to start charging (a reasonable amount) for API access but were giving developers until the end of the year to prepare no one would have batted an eye.
Most would probably migrate to the Reddit app for free. Some would just start paying to use the app of their choice and we’d have moved on.
Reddit showed their true colors which was a big f you to the free labor and free content producers of their platform.
I would’ve paid $5-$10 a month to Apollo had this all been handled professionally. Instead I’ve deleted Reddit , fired up an rss feed app and I’m also here now. There’s a handful of communities I haven’t found a suitable replacement for but I’ll live.
Check out Inoreader (plus Reeder for an A+ iPhone/Mac/iPad experience). I’ve found Inoreader to be by far the best RSS reader, and I’ve been using it for years now. It’s UI is very slick and unassuming, but has a ridiculous number of settings and preferences if you really want to dial in your experience
FreshRSS is great, if you like self-hosting, and you like a web interface
Feedr is nice on Android
If he’d announced that they were going to force the app developers to share ad revenue or charge users a reasonable monthly fee for ad-free access and share that with Reddit, I think the backlash would have been far less.
But that’s not what Steve wants. He wants to get all the ad revenue AND be able to track user activity to sell to the data brokers/advertisers. This was never going to be a situation that we users found reasonable.
I pay YT premium, I can listen to hours and hours of music, or watch hours of videos, plus I can download them and go to a poor connection area.
I don’t mind they hooked me with a free service and then offered me the option of ad free.The move from reddit is if you start to use more the service, if you want to see more posts, if you have more subs, if you upvote/downvote more, if you send more messages, if you comment more, if you post more, if you have more moderation actions to help a sub stay on focus and remove spam then you have to pay more.
Personally I used to pay for YouTube Red (back when it was called that). I stopped in protest against YouTube’s changes to their partnership programme screwing over smaller users (when they introduced the recurring viewership hours to qualify for partnership). That was the final straw after their abhorrent attitude towards copyright over a long period of time.
On Android, formerly Vanced, now ReVanced, get me everything I could want out of the official app with YouTube Premium, but for free.
I HATE ads with a passion. Even taught my kid from a very young age to put his hands over his ears, look away, and say “la la la!!” until an ad ends.
Once Vanced shut down, I was devastated. ReVanced really saved my experience, though, and I’m so thankful it exists.
Steve, in fact, was part of the BoD when Reddit stopped the revenue sharing scheme that some apps had up until… 2021? Something like that, don’t quote me on it.
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.
The initial spark definitely came from Reddit’s clear backstabbing of 3rd party developers with the API change. There was no attempt to work with developers, just to remove them indirectly.
This being particularly bad when 3rd party developers were basically holding up most power-users, most moderators, and basically anybody who actually needed accessibility features (seems like Reddit’s never heard of blind people by the way they made their app).
When you combine that with the catastrophic mishandling of the situation with that incredibly awkward AMA, the internal leaks, and the accusations towards Apollo Dev, it made it incredibly obvious that Reddit wasn’t acting in good faith…
That’s really what started the shit storm that’s still raging now with the blackouts, subs and mods being blackmailed, subs converting to NSFW, the John Oliver stuff. It’s all because of how badly Reddit mishandled the situation. It’s almost like they forgot their website is mostly ran by the same volunteers they were screwing over.
However, I think you are right to an extent that if Reddit had taken the time to add accessibility and moderation features into their apps, and just improved the interface in general instead of just focusing on sucking the most money and telemetry out of their audience possible, then things would never have advanced as far as they did…
But I also think that’s one mighty big “what if” because if they would have had the foresight to do any of that, they would’ve had the foresight to not mishandle everything else as badly as they did either.
What this is really about and people are just starting to realize is: the interests of the shareholders and CEO who want to get rich is not compatible with a volunteer created and volunteer modded site. People aren’t eager to do unpaid work just so the CEO can get rich. This API stuff is just exposing it.
The other thing is that they’ve just handled things so incredibly badly. Limited communication largely directed at third-party media sites, erratic rules changes and enforcement, doubling down with heavy-handed admin actions.
I think that even beyond a need for profit they lost sight of why they have substantial value in the first place. The majority of their value came from their community which made “the front page of the internet” a pretty honest claim. Their software isn’t worth billions, but the front page of the internet sure is. They should have had a substantial community engagement department specifically to kiss ass and build relationships with mods (and users via AMAs) so that open lines of communication existed - and they probably should have taken control over key things like inserting an employee as top mod of the top 50 subs (make it standard practice for hitting top 50, offer cool extra services like a visit to HQ and such for the mods so its like they “win” rather than “reddit seizes control” even if that’s what it is).
Instead they stayed way too hands-off and basically treated their community as an afterthought. The poor communication made me feel disrespected as a user, so I can only imagine what its like for the mods who put far more time and effort in and are in the direct line of fire of erratic admin actions. I mean, this isn’t even hard. Just make a vague corporate statement that you’re “very sorry” about all the “confusion” and you’ll be “putting changes on hold an re-evaluating while you work with various parties to come up with solutions”. You make some token concessions and then do 80% of what you were gonna do anyway, 1-2 months later. Its dishonest and shitty but it’s not rocket science to take some of the fuel away from the fire. Like, do they even have a PR department or… did they completely forget that the community even mattered?
If Reddit has an employee on staff as a mod that can approve posts, then they lose safe harbor protections. Anything that mod approves is considered representative of Reddit, giving them editorial control and causing them to be handled more strictly. https://caselaw.findlaw.com/court/us-9th-circuit/1856011.html
Further, if Reddit gave bonuses to mods, then mods would be considered unpaid employees. Any kind of “swag” or quid pro quo for being a mod of a big subreddit increases the chances that those moderators will be considered unpaid employees by the Department of Labor. AOL famously got in big trouble for giving free/discounted internet access to their volunteer moderators. https://casetext.com/case/hallissey-v-america-online-inc-sdny-2002 (Settled in 2009 for $15 million in back pay.)
Combining the two is terrible news for Reddit and would make their business model absolutely unsustainable. Every mod would be an employee and every post would be representative of Reddit as a company. If a mod approves a link to copyrighted material, then Reddit could be sued.
The weird thing is that they ARE compatible. They could have charged slightly more per user than they make on the official app and everything would have been fine. This move reduced shareholder value and user value.
Reddit makes $350m a year in advertising revenue, it is in theory a fantastically successful business that could make plenty of profit for its shareholders.
The problem is solely down to them raising more and more capital the latest at a $10B valuation. Because of this they need to increase the revenue even further to try and justify the inflated valuation and that is what has led to the latest situation.
I am sure they could use less drastic ways to rise revenue, clearly without spreading lies about Apollo creator and alienating moderators. There is a right way and a wrong way to do things. And than there is very wrong, Reddit way to do things.
What really told me that reddit was squandering its revenue sources was when they shuttered redditgifts two years ago. Maybe there were issues behind the scenes, but they had commissions from the storefront and from elves, and something reddit has never been particularly good at: Good publicity. And instead of figuring out how to make it profitable, they just killed it.
They didn’t even bother to answer questions why.
It was at that moment I knew the current leadership was rudderless, and now everyone’s finally come around to it.
Why not slightly less? That would make more sense to me.
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.
A slight profit is compatible, I get it you can’t run at a loss. But it’s no longer “look at this neat thing we can do”. They’re not building goodwill with the unpaid creators and mods. Everything they’ve said and done is oozing with “Get back to work you unpaid peasant! We need to IPO and get rich!” They’ve shown nothing but disdain towards mods and users.
I was upset to lose Apollo but hearing that they where going to exclude some apps for accessibility I thought to just move there. My main issue is ads. Just any alternative to avoid the ads on their app was gonna be good for me…. Then they started completely mishandeling the protest exercising their technical authority over the subs and content and i got to lemmy real quick.
That is just a trap. Any app that gets exceptions will either be heavily restricted or instantly get too many users and reddit can then claim it’s not just an accessibility app. They have not spent any time thinking about how that would work and they just said it because it was an argument against them. If they cared even for a second about accessibility the app would already have it but they they chose to add NFTs to the app instead.
Yup, ive read the post from r/blind they are just stabbing in the dark to calm ppl down at this point.
