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[return to "Had a call with Reddit to discuss pricing"]
1. Lx1oG-+v6[view] [source] 2023-05-31 18:01:13
>>robbie+(OP)
Their pricing is just absurd. Reddit's official app and webpage is garbage, and instead of working with amazing developers like Christian to add whatever functionality they need to increase their revenue, they're doubling down on bad decisions and alienating their users. Pure hubris... they've forgotten their own history and why the Digg exodus happened.

Seriously, _what_ are they gaining by eliminating access to third-party clients? If they want usage data, they already have all the API calls. If they want more ads, they can change the APIs to inject them.

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2. yojo+aD[view] [source] 2023-05-31 20:05:39
>>Lx1oG-+v6
Facebook's average revenue per user (ARPU) is ~$10/quarter[0], and 6x that in the US. Which is honestly kind of stunning. Reddit is presumably much less than that, but they might be reasonably gunning for a number better than Pinterest, with an ARPU of ~$1.50[1].

To put the pricing post into the same context, we're talking $7.50 per Apollo user/quarter, which is closer to what Facebook makes per user than Pinterest.

That said, presumably 3rd party client users are especially active and would skew higher ARPU than the average Redditor, and it wouldn't surprise me if they were more likely to live in developed countries.

I dunno. I started running the numbers expecting to be outraged, but the cost doesn't seem crazy far from what Reddit could conceivably hope to earn off these users. I doubt Reddit is monetizing anywhere near that well right now, but if they're pricing the API in a forward-looking way, rather than planning to ratchet it up every quarter inline with monetization efforts, it could make sense.

0: https://www.statista.com/statistics/251328/facebooks-average...

1: https://www.statista.com/statistics/995251/pinterest-quarter...

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3. annexr+gQ[view] [source] 2023-05-31 21:06:06
>>yojo+aD
I had the same thoughts, that Reddit's reasons must stem from opportunity cost.

The Apollo developer does however address this in his post and he claims that Reddit's ARPU is only $0.36/quarter. Reddit has likely been doubling down their efforts on Ad Targeting, etc and perhaps forecasts much higher.

Christian's reddit post only addresses ads though, but Reddit has been trying to diversify and create multiple products and revenue streams. They have gold for purchase and if I recall they were trying to launch some Clubhouse-esque product. Point is, it's hard to push any of these things if so many users are on 3rd party clients that don't support such features.

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