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Reddit CEO Digs In Heels As User Outrage Engulfs Website (www.huffpost.com)

submitted 2 years ago by halo5@lemmy.world to c/lemmyworld@lemmy.world

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Wow. Front page of huffpost.com right now. Interesting...

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[-] Panda@lemmy.world 71 points 2 years ago

But Huffman says the “pure infrastructure costs” of supporting these apps costs Reddit about $10 million each year.

Eh, so although, according to him, the third party apps cost Reddit 10 million per year, he still decided that 20 million a year from a single third party app developer is reasonable? I think he needs to learn some basic math...

[-] a1studmuffin@aussie.zone 35 points 2 years ago

I don't think they seriously expected any third party apps to agree to the costs. They just wanted a plausible excuse to funnel everyone into their own app for data collection and advertising revenue. That's my best guess anyway, another business decision for the IPO.

[-] Aiastarei@lemmy.world 5 points 2 years ago

Well there is also human cost for development, PR etc, which also probably costs a lot

[-] Lev_Astov@lemmy.world 13 points 2 years ago

That would be where that 10 mil figure would have come from.

[-] rolaulten@lemmy.world 7 points 2 years ago

No. $10mm/year for cloud spend is totally reasonable for a website the size of reddit. Honestly it's lower then I would expect.

[-] linearchaos@lemmy.world 8 points 2 years ago

Yeah, is not the cost he's charging 3rd party, it's the expected lost ad revenue.

[-] Kissaki@feddit.de 2 points 2 years ago

So bad the article did not put that number into context.

They're just presenting one-dimensional claims by the CEO. The overall infrastructure cost tells you nothing about gains or cost or losses due to API users.