Reddit’s recent announcement regarding its plan to charge for API access has raised concerns among developers, particularly the creator of the widely-used third-party Reddit app, Apollo. The proposed API pricing changes would impose exorbitant costs on app developers, making it financially challenging to sustain their services. This article delves into the implications of Reddit’s new API pricing model and its potential impact on independent app developers.
$20 Million would be required to maintain the app in its current form
In response to the growing use of its platform by AI companies for training large language models, Reddit decided to modify its API rules. Reddit CEO Steve Huffman highlighted the value of Reddit’s data corpus and expressed the need to limit free access for major corporations. However, it appears that independent developers will also bear the brunt of these changes, slated to take effect on June 19th.
Christian Selig, the sole developer of Apollo, revealed that complying with the new API policies would require an astronomical sum of $20 million to maintain his app in its current form. Selig’s concerns stem from the high number of API requests Apollo receives. With approximately 7 billion requests made last month alone, the cost estimation presents a daunting challenge.
Apollo, renowned for its exceptional design and functionality beyond Reddit’s native app, faces a precarious situation. Despite offering subscriptions, the app’s existing revenue falls significantly short of covering the impending API costs. Selig notes that the average user generates about 344 API calls per day, necessitating a subscription price increase to at least $2.50 per month. However, this adjustment fails to account for power users who utilize the app at even higher rates or the app’s free users. Consequently, Selig anticipates substantial financial losses each month, even with the existing subscriber base.
While Reddit maintains it provided pricing details per 1,000 API calls rather than a monthly bill, the company has not disclosed specific information. A Reddit spokesperson emphasized that the pricing structure is intended to be fair and equitable based on usage levels. The spokesperson also expressed Reddit’s commitment to supporting third-party developers and their apps, acknowledging their value to the Reddit ecosystem.
Notably, these API pricing changes bear resemblance to Twitter’s API policy changes under Elon Musk. Twitter banned third-party client apps while making its API quite expensive for researchers and businesses reliant on extensive access to Twitter data.
RELATED:
- Reddit Announces Updates to Developer Terms and New Moderator Tools
- A Reddit User with Pixel 5 Allegedly Received the April Security Update a Week Early
- Best Xbox One Games in May 2023
(Via)
