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I'm confused about the details, maybe someone can clarify. The OP says Reddit claims they were being blackmailed (which clearly they weren't) but it's the talk

I'm confused about the details, maybe someone can clarify. The OP says Reddit claims they were being blackmailed (which clearly they weren't) but it's the talk around opportunity cost that I don't understand, especially as related alleged blackmail. 1) It would cost Apollo $20m to continue operating, and somehow Apollo, not able to afford it and offering to just kind of walk away from the app constitutes Blackmail? 2) The $20m opportunity cost claims. I don't get this. The new actual cost to Apollo would be $20m, that's not an opportunity cost for Reddit. The opportunity cost for reddit is really just the resources & attention it takes them to keep the API system running, which is presumable far, far, below the sticker price they will be charging 3rd parties per 1,000 API calls. 3) In general, I don't understand how any 3rd party has leverage to threaten or blackmail Reddit. Sure some people prefer to use 3rd party apps & services, but I'm assuming (is this a bad assumption?) that if those apps and services went away that a large majority of of their users would simply switch to native reddit options rather than stop consuming & interacting with content they enjoy.

skeaker 3y ago
I believe it was the phrasing of "going quietly." I think they thought he meant that he would slander(?) them if they did not pay the $10M. But of course that misunderstanding was, one sentence later, resolved, so Reddit going back and treating that like a threat is simply a lie.
- ineedasername 3y ago
  Ah, okay. I'm still not sure why Reddit would consider it blackmail for a 3rd party developer to say "If you make it impossible for me to run my app/service I will be very angry and tell people about it and say you're bad for doing it" I mean, that's not blackmail that's just, like, normal behavior for two groups that have a dispute.
  - skeaker 3y ago
    Yeah, the whole thing really doesn't make a lot of sense at face value which is why the logical conclusion is "Reddit lied to try to justify their API decision by making him look bad."
Peleus 3y ago
1) You're correct in saying it clearly doesn't constitute Blackmail. 2) No, the opportunity cost for Reddit is the users using Apollo to browse Reddit as opposed to official channels. This prevents Reddit from effectively monetizing those users, because they cannot display them ads, track their usage habits, and all the other things social media companies do to monetize their user base. The reality is that using a user browsing via Apollo costs Reddit directly (server costs) and indirectly (missed opportunities aka opportunity cost). 3) Reddits bet is that the majority of the user base will be retained. The vocal outcry suggests they will not. Only time will tell which side is right. The other point many 3rd party advocates are making is that moderation tools, the majority of which are considered 3rd party apps, will also stop working. This will most likely significantly degrade the quality of many subreddits. People aren't necessarily angry saying "we demand our equal share", but rather "this is really short sighted and you're going to kill what we care about".
- ineedasername 3y ago
  Thanks, that clarifies a bit and helps me put this post in a proper perspective

skeaker 3y ago

I believe it was the phrasing of "going quietly." I think they thought he meant that he would slander(?) them if they did not pay the $10M. But of course that misunderstanding was, one sentence later, resolved, so Reddit going back and treating that like a threat is simply a lie.

ineedasername 3y ago
Ah, okay. I'm still not sure why Reddit would consider it blackmail for a 3rd party developer to say "If you make it impossible for me to run my app/service I will be very angry and tell people about it and say you're bad for doing it" I mean, that's not blackmail that's just, like, normal behavior for two groups that have a dispute.
- skeaker 3y ago
  Yeah, the whole thing really doesn't make a lot of sense at face value which is why the logical conclusion is "Reddit lied to try to justify their API decision by making him look bad."

Peleus 3y ago

1) You're correct in saying it clearly doesn't constitute Blackmail. 2) No, the opportunity cost for Reddit is the users using Apollo to browse Reddit as opposed to official channels. This prevents Reddit from effectively monetizing those users, because they cannot display them ads, track their usage habits, and all the other things social media companies do to monetize their user base. The reality is that using a user browsing via Apollo costs Reddit directly (server costs) and indirectly (missed opportunities aka opportunity cost). 3) Reddits bet is that the majority of the user base will be retained. The vocal outcry suggests they will not. Only time will tell which side is right. The other point many 3rd party advocates are making is that moderation tools, the majority of which are considered 3rd party apps, will also stop working. This will most likely significantly degrade the quality of many subreddits. People aren't necessarily angry saying "we demand our equal share", but rather "this is really short sighted and you're going to kill what we care about".

ineedasername 3y ago
Thanks, that clarifies a bit and helps me put this post in a proper perspective