while this article sheds light from another angle on the investablility of reddit as a commercial property, it still misses the mark regarding the real issues that spez has caused while making the mods appear as somewhat entitled thugs rather than the exploited laborers that they are. in any case, spez is made to look incompetent nonetheless.
i think the clock is ticking for either spez to walk things back, renegotiate API terms, or simply resign. I believe the latter will be the well-earned end result.
I’m okay with him being portrayed as incompetent but I agree spez is far more malicious than he is a bumbling idiot
You can be both an idiot and malicious. Seems that’s what is going on here tbh.
He will resign after the changes are implemented, or after the IPO. He’s the scapegoat of the investors
I think the only way this ends amicably between the community and Reddit at this point is Huffman is ousted and then they can finally entertain other deals for API access. I’m sure they’re looking at the insane profits AI companies are raking in largely off of data they scraped from sites like Reddit for free and thinking “WTF”. My impression is third party apps got caught kinda in the crossfire on this and weren’t actually their main target, but Huffman has managed to turn it in to some weird kind of ego issue now he’s accusing multiple developers of antagonizing the platform, refusing to work with them, when we have proof from several of them in multiple instances of the direct opposite. Attempts to reach out that go unanswered. An impossibly timeline to implement changes. Trying to throw the Apollo dev under the bus only to double down when confronted with proof he lied to press. Utterly bizarre. He needs to go.
My problem with the AI narrative is that AI companies probably don’t even use the API, they use a web crawler to scrape directly from the website. And any who are using the API can pretty easily switch
I think every article is missing a key issue and no one has asked Spez yet…
If 3rd Party Apps and AI services are making millions (as he asserts) why isn’t Reddit competing in those areas?
3rd Party Apps aren’t in a war of new features, putting a 5-10 person development team together to analyse the competitor apps and match the features would kill off the unique selling point of the 3rd Party Apps. Why hasn’t Reddit done this?
LLM aren’t new, the first appeared in 2018. Why hasn’t Reddit assembled a team to exploit their own data? In my experience 1 data scientist backed by 2 software engineers can do a lot. It isn’t a huge amount of people needed.
Even if you buy his argument that they companies are profiting from Reddit, Reddit is a platform those companies are building value from. Reddit isn’t providing those services and so those companies profits aren’t “stolen” from Reddit.
It’s like company who sells art supplies. They sell them to a painter for £100, then a painter sells their artwork for £1000. The art supply company then gets upset it didn’t get £1000 for its supplies.
Great article, thanks for sharing. It’s nice to see news outlets accurately capturing then situation.
They make a good point about the free labour, the disconnect is huge. They want reddit to go public so they can make millions of dollars off the backs of indentured servitude. So when do the nods cut their cut? No way is reddit going to hire moderators for the 7000+ subreddits that went dark, so the salting the earth well and truly.
I do wish they’d been clearer about the issues created for mod and accessibility tools and I wish any of the articles would note the ‘misrepresentation’ of the conversation with the Apollo developer
I wish they actually did a bit of research on why people are protesting. Saying the third party apps simply “keep communities vibrant” completely misses some major points. Personally, I’m more furious how spez handled the AMA. He showed that the reddit staff has no interest in listening to anything that concerns the community. We’re all just an obstacle between them and their deserved money.
This article from TechCrunch had a line that really confirmed some suspicions I’d had about this:
[Spez] told the publication that he was the person inside the company who was responsible for this policy change that affect these apps.
If you thought Reddit’s absolute refusal to do anything in light of all the bad press was borderline sociopathic, there you go. Spez is taking all of this personally.
There was a way for everyone to win here, given some concessions. Yet no. Huffman decides to go nuclear with the API pricing to try to maximize profitability. This seems to tell me that the way Reddit was sold to investors it was way over valued.
YET, I still firmly believe that Reddit does not know what to do with its user data, or has not figured a way to conveniently, and concisely package it in any usable manner. As is, Reddit should be profitable based on the data users provide. Facebook does it with user data and remains free to use. This might explain some of the weird development choices Reddit has made over the years with new Reddit and the mobile app. They’re trying to shoehorn users into a system that allows their data to be usable, yet a large portion of the user base hasn’t followed along. They’ve utilized RES. old Reddit, and 3rd party apps instead of the official app which tries to compile user data into something that can be more easily packaged into something that can be sold to advertisers.
Now they’re on their 3rd year trying to go public, and they haven’t made measurable progress. Investors are waiting for their return, and Huffman is under the gun to produce some measured result…hence the API pricing and this nuclear option.
It’s a nearly 20 year old company that does not have a financially sustainable, robust business model (contrary to lemonade stands). It might be profitable, despite what they claim, but they are still just shooting in the dark, randomly iterating ideas.
These leaders are fucking jokes, they wouldn’t get hired as junior analyst at any consultancy/bank.
There’s a certain schadenfreude in seeing the outcome of spez’s misguided choices. I’m still very sad about Reddit. For me, RIF was Reddit.
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