this post was submitted on 12 Jun 2023
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Others have speculated that the API pricing model is built around customers who want to use the data for AI training, not customers who want to build apps for public use. The $20M price tag is what they're hoping a mega corp will pay for data access and don't care about anyone who can't afford that much. Some money is better than no money, but for a lot of people the "chance" at BIG money is better than some money lol
If this is the case, I donβt understand why they wouldnβt just separate into tiers, where mass data usage to feed into a language model is priced differently than people legitimately using and contributing content to the site.
This is what happens when a bunch of MBAs are detached from the product they're working on.
I think it's simply that they want to funnel all of their users to official channels. All of this "discussion" is a poorly veiled attempt at public justification. 30 days notice at the quoted price tag was very intentional. My hope is that Reddit seriously miscalculated the amount of damage this would cause. My suspicion is that /u/spez doesn't care and is willing to nuke the site for a one-time payout at maximum valuation.
they still have a lot to gain by killing the 3rd party apps and forcing the remaining users to the platform that will benefit their valuation the most. the pricing is to court the big whales to sell data to and the forcing people to use the native app is to improve the quality of the data they want to sell.
Precisely. Investors like apps because users cannot change their user experience, disable telemetry, block ads easily, and so on. They receive push notifications which drive engagement and allow easier tracking across accounts.