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 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.
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.
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”
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.
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.
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