Is it so unreasonable to charge 20m/year to a super popular iOS app? I don't know.
Does apollo make money from this? Do they take advertisement income? But I imagine, if you are the most popular app, on the most popular mobile platform, of a very popular site like Reddit, there has to be a lot of money floating around no? They definitely have income, and definitely have expenses (development isn't free). Curious to actually see the balance of these.
But if reddit want people to use their own app, I don't see why they would support Apollo for free. I also don't know that the actual cost towards reddit would be. A reasonable price is probably somehwere between 0 and 12k.
The numbers they posted suggest they could still easily be in profit with these charges, they just wouldn’t be making 20m profit.
The subscription currently costs $0.99/month or $10/year. With the new API pricing, he’d have to pay around $2.50-$5 per month per user. This means not only would the subscription have to become non-optional, but that he’d probably have to bump its price to $5/mo to just have API and server costs covered. Factor in super heavy users, the App Store cut, and a bit of margin to live off of and you’re looking at $7-$10/mo.
A few users will pay this much but I’d bet that most will not. It’s as much as a streaming service costs for a free service. The user falloff would be immense, and this is exactly Reddit’s goal: they want to herd users into its official app and site where they can be subjected to ads, data harvesting, algorithmic feeds, and incessant A/B testing to juice “engagement”. Whether that happens by way of third party app devs throwing in the towel or from users being priced out of using them matters not.