How Reddit broke Reddit
Just like most websites and social media platforms, Reddit sells ad space. Back in 2021, when plans for the IPO were initially disclosed, it was revealed that Reddit's advertising revenue was up to $100 million a quarter, butAside from advertising, Reddit also makes money by offering a premium tier, dubbed Reddit Premium. It costs $5.99 a month or $49.
Each of the aforementioned apps would need to pay a hefty monthly premium in order to have access to the Reddit API, and as we'll see later, the pricing is excessive at best. A few weeks after the announcement for the change of Reddit's business model, the company started making calls to the developers, and things quickly got ugly, with most popular third-party apps revealing that their apps will cease to function on June 30, a day before Reddit's new official API pricing model goes in full effect., the developer behind one the most popular Reddit apps on iOS, Apollo, Reddit has revealed its projected pricing of $0.24 per 1,000 API calls.
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