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this post was submitted on 24 Jun 2023
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3rd party apps are not compatible with making $$$. Anyone in the business or shareholders who want to make profit will be behind killing 3rd party apps.
Reddit sells NFTs (avatars) that could easily make them more (from a percentage of each transaction) than what they're asking for API access, if they just required 3rd party apps to include them, which wouldn't have generated barely any backlash. But it's their loss, and if we get a federated alternative in the process... then so be it.
Sure they are, if they charged a similar amount for api access as they're currently making from an average user all of the apps would gladly pay it, and reddit wouldn't be losing any money from 3rd party apps. They could even charge 2-3x that amount and make a nice profit off of it, and all of the apps would probably be fine. It's only because they set the bar at an absurd 20x that the apps can't come up with enough money to pay
Having third party apps is very profitable if those apps are used by thousands of unpaid moderators giving away free labour.
And one of the main reasons they do this labour is because these apps make it very efficient to moderate a huge number of posts.
Reddit is not a profitable venture. It's a charitable one run by the users who prop it up.