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submitted 1 year ago by serenitynot@beehaw.org to c/news@beehaw.org

'Unlike some of the 3P [third-party] apps, we are not profitable,' Steve Huffman says in defending the move to charge for high-volume API access.

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[-] Lojcs@lemm.ee 49 points 1 year ago* (last edited 1 year ago)

How tf is reddit not profitable? When I first joined reddit it had a progress bar to the side that showed the percentage of server costs covered by reddit gold and it was always filled. Since then they started showing lots more ads, added reddit coins, awards and premium subscription to increase their revenue. The increase in their cost/user has to be from the native image/video uploads and redisigning the website/app. If YouTube manages to be profitable hosting 4k videos, reddit must be doing something very stupid to become unprofitable with their low quality videos.

[-] Sans_outside@lemmy.world 4 points 1 year ago* (last edited 1 year ago)

I believe AD revenue is drying up for all tech sectors and the collapse of Silicone Valley Bank didn't help either. You can see a lot of technology companies are cutting back on spending. Layoffs are happening in all sectors of technology. My guess is these companies are preparing for the coming recession.

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this post was submitted on 11 Jun 2023
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