“Our pricing is $0.24 per 1,000 API calls, which equates to <$1.00 per user monthly for a reasonably operated app,” the Reddit worker said.
This reminds me of the “average user” Comcast would talk about when they introduced price discrimination metered billing. Just include the long tail of lurkers and signups who almost never use the service, and you can claim that the Apollo users (who are power users) are just outliers who should pay more.
Ultimately for me this is a reminder that when there’s a for-profit business ramping up to an IPO, it ultimately has to decide what the products are. Reddit tried to make itself the product with Reddit Gold, but clearly not enough people were paying for it, so it has to make users the product. It’s hard to “monetize” users through someone else’s app, so they’ve basically decided that for app users, if the developers figure out how to sell a very expensive service, more power to them, otherwise fuck 'em.
It’s not necessarily that “not enough people” were paying for Reddit Gold, but that subscription models like that tend to be great for making a stable profit but not so great for line-go-up-forever endless growth, which is what shareholders always, always want. It doesn’t matter to them if reddit is profitable if it’s not even more profitable than last year.
Either way, yeah, the reddit users are the product and the free labor and not the customer.
This reminds me of the “average user” Comcast would talk about when they introduced
price discriminationmetered billing. Just include the long tail of lurkers and signups who almost never use the service, and you can claim that the Apollo users (who are power users) are just outliers who should pay more.Ultimately for me this is a reminder that when there’s a for-profit business ramping up to an IPO, it ultimately has to decide what the products are. Reddit tried to make itself the product with Reddit Gold, but clearly not enough people were paying for it, so it has to make users the product. It’s hard to “monetize” users through someone else’s app, so they’ve basically decided that for app users, if the developers figure out how to sell a very expensive service, more power to them, otherwise fuck 'em.
For every publicly traded business, or those that are set to become publicly traded, the product is “shareholder value”. All of them. Always.
They’re in the business of selling stocks now.
It’s not necessarily that “not enough people” were paying for Reddit Gold, but that subscription models like that tend to be great for making a stable profit but not so great for line-go-up-forever endless growth, which is what shareholders always, always want. It doesn’t matter to them if reddit is profitable if it’s not even more profitable than last year.
Either way, yeah, the reddit users are the product and the free labor and not the customer.