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It’s only weird if you think this wasn’t the result they wanted. They don’t just want the ad revenue. They want the user numbers for their IPO and the tons of sellable user data you can collect with a smartphone app.
this post was submitted on 27 Jun 2023
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Thing is, the slow boil technique is tried and true. Each turn of the crank would only anger a small group, and would ensure the platform remains stable and popular.
A better question is why is this happening all at once? It feels like the top brass had a meeting to discuss options to increase revenue, and just decided "Fuck it. Let's just do them all"
My feeling is they looked at their user numbers, and the specifically those using the API and/or 3rd party apps, and did the calculation to decide that they wouldn't lose enough people to cause a mass migration.
I think whether that calculation was correct or not still remains to be seen.
A distant cause is likely the changes in monetary policy (rate hikes). The tech sector has been structuring their capital as if borrowing would always be cheap, and they were unprepared for a sudden flight toward sustainable cash flow.
I think their only hope for "fuck you money" at this point is to cash out at IPO and watch it burn.
I think it makes a lot of sense as a series of emotional reactions, mostly from spez. He won't back down and no one can make him.
They don't want to serve ads through the API because ad buyers care about exactly how the ads will be presented. The apps would have to work very closely with Reddit to ensure consistent ad presentation, which is more work for them so they don't want to do it.
The API price was plucked out of thin air, presumably based on what they believed OpenAI/Microsoft/Google would be willing to pay. Third party apps were acceptable collateral damage.
My guess is their funding dried up due to recent financial system instability causing venture capitalists to stop blindly handing out money. That plus the NFT shit they were into suggests they might have had some exposure to the recent crypto fallout as well. The upcoming IPO and the way spez seems determined to see this through no matter what screams looming financial crisis.
because the commons is not sustainable as a profit entity, never was. The move to 5%+ rates is pushing every player to "make it" or "die"
reddit is toast.
I’ve been part of a startup that was looking to exit shortly, and yeah they go through all kinds of long-term-destructive behavior just to make the numbers better on the short-term. I do also think a shrunk IPO timeline because of the tech VC market tightening is the cause of all of this.
I've adopted the same IPO theory. Huffman thought this would drive more people to the official app, and he expects that increase to help the IPO so he'd make more money from it. If it works he'll make a lot more money a lot faster than the approach in the screenshot. Then he can just serve everyone ads anyway, sell data etc.
Also he probably thought we were all a bunch of spineless addicts who would cry really loud and eventually fall in line, and a lot of users have. Now let's wait and see the quality of community and content he gets after pissing off the people doing the most to create it.
It may be more likely people just engage less with reddit by waiting until they are at a computer.
Reddit corporate is not very smart. Never was.
Spez and his mates had proven way back in the early 10s that they had the mindset and attitude of 4chan troll teenagers, despite being business-owning adults.
Maybe a jailbait mod who also secretly edits user comments with his admin privileges is not suitable to be CEO.
They did that not to (primarily) kill 3PA, but to get money from people who scrape data for AI datasets.
Although I think they could've just specified this in their ToS...
hell they could have bought the 3rd party apps and hired the devs
That actually sounds like a great idea
They did that once. Bought the best app in town, butchered it, and now we’re here.
but it did work for them in that case, no big exodus occurred when they did it (as far as I remember?)
They don't want some of the money. They want ALL of the money and they have nothing but contempt for their users. They don't just want a small revenue stream that they need to share with other entities. They want to monetize every aspect of their service and they can only do that if they force users to use their app. They have big plans for the app to make it even shittier I imagine.
And so close to the deadline as well. It's really weird
I stopped trying to make sense of any step Reddit inc takes since the whole API shit show to be honest.
I think they view it as ripping off the bandaid now before their IPO. They probably figured they would lose some single digit % of users that would recover over time, and now they will have full control over the experience with no 3rd party apps, which they will want in order to squeeze more money over time.
I always thought requiring premium for 3rd party apps would have been the best and easiest move for essentially no actual work.
They still would have alienated people if they did that. Myself included.
I think one of the biggest issues that Reddit has with third party apps is that they don’t have control over the user experience.
I think Reddit is experimenting a lot with their app to see what works and doesn’t work to get new users engaged. Note that I said new users. Reddit doesn’t care about old users. They only care about growing and getting new users engaged.
Reddit implemented features like community chat, community voice/talk spaces, subreddit suggestions, NFTs etc.
I think it’s harder for Reddit to keep experimenting and seeing what sticks when 3rd party apps won’t or don’t implement those features.
So yeah, bottom line is, Reddit wants more control and Reddit wants new users that are engaged.
I understand why they do it. I don’t agree with how they went about it. I’m mostly upset that they think 3rd party apps are riding on Reddits succes when Reddit itself is riding on free user content/moderation/voting. It’s our content and we should be able to consume it the way we want to.
when 3rd party apps won’t or don’t implement those features
A lot of those features weren't accessible through the API, so the 3rd party apps couldn't implement them even if they wanted to.
It's also a prime example of how no, the CEOs and highly paid bosses of large corpos don't have to know any more than even an average user. Anyone with a brain could figure out this is gonna end terribly.
Not to mention the less tangible costs too, like the company's reputation and trust.
Or starting a gold rush for reddit competitors that didn't exist previously.
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