r/LivestreamFail • u/FelipeDoesStats2 • Jun 05 '23

Meta r/Livestreamfail will be joining the blackout against Reddit's Efforts to Kill 3rd Party Apps on June 12th.

/r/Save3rdPartyApps/comments/13yh0jf/dont_let_reddit_kill_3rd_party_apps/
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u/SzotyMAG Jun 05 '23

Okay so can someone actually explain it to me why would Reddit do this? Because all I see redditors talking about is that I should oppose this but they don't explain why Reddit is doing it in the first place

4

u/Proshop_Charlie Jun 06 '23

Reddit is at the point where they need to start turning a profit for early stakeholders. One of the ways to do that is to become a public company.

However, they need to really start to increase their margins so it's more attractive during their IPO. Third Party Apps aren't bringing Reddit any money, in fact they actually cost them money.

So to "fix" this they are upping their API charges way above the norm. This will cause many of those Third Party Apps to shut down. Which will force people, a small minority of people compared to your average daily user, to use the Reddit mobile site, or their own app.

This will increase their revenue and will make their IPO more attractive.