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this post was submitted on 01 Jul 2023
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Mildly Infuriating
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But there are so many ways Reddit could have played this better. It wasn't just about monetizing. The API changes were in bad faith and meant to kill 3rd party apps without flat out doing it. Users would have been understanding if they charged a reasonable amount of started injecting ads into the API feeds, but instead they went full aggro and disrespected not just the devs working to make their platform better, but the users as well. If they wanted 3rd party apps to show their ads or charge a fee to remove ads I would have been understanding, but because of the disrespect I've dropped them.
That plus their own app being abysmal. The official Reddit app is a terrible experience without the necessary features of the old ones
I forgot the actual numbers, but it's downright bizarre that Reddit can't figure out how to make money. They have a massive platform that is user-moderated for free, filled with free user-created content, with third party developers creating solid apps and features, again for free. Reddit should be able to do fuck all and make money
Because of (venture) capitalism...
They made more from people giving it to them. If the company posted a profit, they'd have to pay taxes
So they pay themselves and amass assets.
If it fails you keep your salary and sell the assets. If you owe more than that's worth, declare bankruptcy. If not, collect a check.
Startups stay in this phase right up till IPO, where they try to flip to profits as fast as possible. Then you can not only declare x profits, but y% increase in profits.
Tldr:
They're nonprofitable by choice. This method just doesn't work during a recession.