There’s trouble brewing at Reddit. Then again, there’s always trouble over there, it’s known as the world’s comment section after all. Anyhow, various popular subreddits are set to ‘go dark’ next week, in protest over the changes to Reddit’s API pricing.
Lamps Ready
Late last month, Reddit announced that it would be upping the prices of its API access to make money off of big-name developers that have been using Reddit data to fuel their systems. Most notably, various generative AI tools have been using Reddit and Twitter as key sources of conversational input to build their models, which those businesses are now on-selling to their own customers, essentially making billions, largely via Reddit and Twitter conversation.
Twitter increased the price of its API access also back in March, and now, Reddit’s also looking to build a more equitable system for its API use – though much like Twitter, the change will also impact many smaller third-party Reddit clients and tools, which many people currently use to access the app. The most notable example here is Apollo, a Reddit reader app that provides an alternative Reddit experience. Millions use the Apollo app as it provides extra functionality, including screen-reader compatibility, which helps open up its access further.
Under the new API access charges, the maker of Apollo claims that he’s been quoted around $2 million per month to keep the app running, which will price him and many others out of the market, which will have a greater impact on the broader Reddit community. As a result, a lot of subreddits are planning a 48-hour blackout to protest the changes, in the hopes of getting Reddit to see the error in its ways, and allow smaller tools like Apollo to continue accessing its API at their current rates.
It’s a big move with corresponding big impacts on Reddit usage and could hurt the app’s broader effort to improve its business standing and attract more advertisers to its platform. The controversy itself will already have some impact, with unrest among the Reddit community likely to spook some potential ad partners who may have been considering their subreddit outreach options.
Then again, it’ll only be a 2-day blackout, and Reddit is within its rights to demand more from developers for using its API. But much like Twitter, the broader changes, designed to address large-scale usage, will also impact smaller developers, who do play an important role in facilitating in-app activity and engagement. A lot of Subreddits are taking part. Right now, as it stands, it looks like Reddit is going to be very quiet on June 12 and 13. It’s a significant move that will definitely get Reddit management’s attention – but whether they switch course on their API pricing as a result remains to be seen.
The Wrap
Reddit seems unlikely to shift, but it could look to make concessions, especially if the change is likely to impact overall Reddit usage in a significant way. Reddit definitely can’t afford to lose users, as it seeks to win over more ad partners. At one stage, in 2019, Reddit had 430 million monthly actives, but a raft of changes to its content rules, which led to the removal of many of the most controversial subreddits, had impacted this, with Reddit now reporting 57 million daily actives instead.
Daily and monthly user counts are not directly comparable, but it’s unlikely that Reddit has anywhere near 430 million monthly users now. As such, Reddit does need to take this threat seriously, though the difficulty is how you might be able to set parameters around any such provisions or concessions to ensure fair application of its API rules.
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