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[Reuters BreakingViews] Investors will say “OK Boomer” to aging Reddit (www.reuters.com)
submitted 9 months ago by athos77@kbin.social to c/reddit@lemmy.ml
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[...] a dearth of profit this late into its existence portends the lack of a real business model, suggesting it’s still not ready for public company life.

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[-] agent_flounder@lemmy.world 59 points 9 months ago

Losing $69M last year I don't see how they turn things around without massive changes. I think they missed the peak of their societal relevance and growth and traded invaluable user goodwill for short term profits. Maybe if they hadn't consistently supported hate speech, radicalization pipelines, astroturfing campaigns, and so forth, and instead focused on better mod tools they could've gained more free mod labor (and now just a few feudal lords), grown faster, leaned their org, gained more relevance and significantly increased advertising revenue. They frittered away time and resources on bullshit the platform didn't want or need, missing the point that it is about creating a welcoming community not turning the site into a mashup of all the other socials.

[-] sentient_loom@sh.itjust.works 31 points 9 months ago

why does every web page need to be a fortune 500 mega-corporation?

[-] athos77@kbin.social 26 points 9 months ago* (last edited 9 months ago)

They don't. But the dot-com frenzy where people threw money at anything tech-related is long over, and investment firms aren't going to give lots of money to a barely-profitable business with a long history of bad decisions. Oh, they'll buy some stock but it's not going to be the massive frenzy Huffman desperately wants. He's going to take whatever he gets and work on his doomsday bunker, and reddit will continue to contribute to the enshittification of both the internet, and society in general.

[-] sentient_loom@sh.itjust.works 13 points 9 months ago

Yep. I understand the desire to make enough money to retire. But I don't endorse turning a public service into a predatory wasteland in a pathetic attempt to retire young.

[-] athos77@kbin.social 8 points 9 months ago

He wants the money for his doomsday bunker.

[-] psmgx@lemmy.world 13 points 9 months ago

They don't, but Reddit is one of the highest traffic sites on the internet, and the infrastructure and programming requirements are massive. That needs $$$$$, otherwise they're going to be scaling it down, fast. And maybe that will be a good thing.

[-] FaceDeer@kbin.social 26 points 9 months ago

Infrastructure, sure. But programming, I don't see it. Reddit doesn't have to be complicated if all you want to do is make it a good link aggregation and threaded discussion site.

But Reddit got greedy, they wanted to be everything to everyone. So they kept trying to add new features to compete with other social media sites. They wanted to be Facebook and Tiktok and Imgur as well, and so they spent huge amounts of resources fiddling with their format and adding stuff like video hosting. Surprise, people already had Facebook and Tiktok and Imgur and weren't interested in something that was second-best at doing those things. So it was a huge amount of costly work that didn't end up earning them much.

This is yet another symptom of the "endless growth" problem faced by lots of modern companies. They can't settle for simply being solidly profitable in their niche. They always need to make their share price go up by getting bigger.

[-] athos77@kbin.social 20 points 9 months ago

This is actually what I think Huffman's biggest weakness as a CEO is. CEOs are supposed to be forward-thinking, coming in ahead of or on top of the next new wave. But Huffman sees an exciting new tech trend, waits until it gets big and then tries to cash in on it. He didn't start reddit crypto until crypto was at it's peak. He didn't do reddit NFTs until they were peaking. He didn't try to do reddit video until after TikTok was huge. He only shut the API door after he'd paid all the bandwidth and infrastructure cost to transfer all of reddit's valuable user commentary to multiple AI companies, including some of the richest corporations in the world. He absolutely fucking sucks as a CEO.

[-] Crack0n7uesday@lemmy.world 7 points 9 months ago* (last edited 9 months ago)

Everyone knew NFTs were a scam from the beginning, I'm surprised they even attempted it considering it was already so late in the game. It took two things commonly used for money laundering and combined them (art and crypto).

[-] spider@lemmy.nz 1 points 9 months ago

Reddit's owner(s), Advance Publications, should've sacked Huffman years ago; I often wonder why they didn't.

[-] Crack0n7uesday@lemmy.world 5 points 9 months ago

The programming requirements are "just copy and paste any updates from that RSS feed thing no one ever bothered to use".

[-] sentient_loom@sh.itjust.works 23 points 9 months ago

Reddit’s ability to unite niche communities around common interests could eventually translate into a sustainable model, especially if it can sell loads of data to artificial intelligence model-builders.

ok boomers

[-] FaceDeer@kbin.social 13 points 9 months ago

Yeah, the window of opportunity for that has already started rapidly closing. In 2022 the strategy that worked for launching the AI craze was "throw as much data as you possibly can into the training phase and somehow a functioning LLM comes out." But over 2023 the state of the art advanced a lot and it became apparent that you don't need vast reams of raw data, what's really ideal for producing a good LLM is a smaller amount of high-quality data.

You can still use Reddit data as a source for that, but it needs extensive culling and massaging to make it really good. I can easily see that making Reddit less unique and so less competitive.

[-] knotthatone@lemmy.one 4 points 9 months ago

The AIs already pulled loads of data from Reddit and can re-use what they have. They don't necessarily need to go back ever again, and they'd only pay for access to newly created data if they care at all.

[-] sentient_loom@sh.itjust.works 3 points 9 months ago

Right. If it sucks for users then where do you expect to get the data to sell to AI bots?

[-] athos77@kbin.social 16 points 9 months ago

Archive link.

[-] agent_flounder@lemmy.world 7 points 9 months ago

Doing the Lord's work. 🙏🏻

[-] imaqtpie@sh.itjust.works 12 points 9 months ago

You love to see it

this post was submitted on 08 Feb 2024
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