Wow. Front page of huffpost.com right now. Interesting...

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[–] 85 points 3 years ago (3 children)

But Huffman says the β€œpure infrastructure costs” of supporting these apps costs Reddit about $10 million each year.

Eh, so although, according to him, the third party apps cost Reddit 10 million per year, he still decided that 20 million a year from a single third party app developer is reasonable? I think he needs to learn some basic math...

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  • [–] 45 points 3 years ago

    I don't think they seriously expected any third party apps to agree to the costs. They just wanted a plausible excuse to funnel everyone into their own app for data collection and advertising revenue. That's my best guess anyway, another business decision for the IPO.

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  • [–] 6 points 3 years ago (3 children)

    Well there is also human cost for development, PR etc, which also probably costs a lot

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  • [–] 11 points 3 years ago

    I'll admit I'm not entirely well versed in this, but what development? Is the API being continually worked on? I'd imagined it was relatively stable, especially given how awful Reddit has traditionally been with any kind of feature development.

    Hell, they couldn't even make their own app, they had to buy Alien Blue and then drive it into the ground for $$$

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  • [–] 2 points 3 years ago

    So bad the article did not put that number into context.

    They're just presenting one-dimensional claims by the CEO. The overall infrastructure cost tells you nothing about gains or cost or losses due to API users.

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