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I think the argument you want to make is not about Reddit's costs (which are low), but rather that should be charging some fraction of their lost revenue per-us
by bscphil 3y ago
I think the argument you want to make is not about Reddit's costs (which are low), but rather that should be charging some fraction of their lost revenue per-user for API use, since API users don't see ads. (Or else require app developers to show Reddit's own ads.) The issue is presumably that Reddit isn't profitable, and free app users are a major source of lost revenue (in addition to being a fairly small cost due to API use).
- ako 3y agoReddit costs are not low, running the organization costs at least 400M per year. You might state that they’re doing many things that are not core to running a community backend, but you can’t separate the core business from the supporting activities. They would have never reached their current scale if they hadn’t invested in marketing and ads for revenue. And that would reduce the value of the backend.