The company wants to charge for API access. Its volunteer moderators have other ideas

  • ZapBeebz@beehaw.org
    link
    fedilink
    arrow-up
    9
    ·
    1 year ago

    Didn’t Reddit already drop at least 40% in valuation from when they started the IPO process a year or so ago?

    • Barry Zuckerkorn@beehaw.org
      link
      fedilink
      arrow-up
      8
      ·
      1 year ago

      Yes, but almost all ad-based business models in tech fell, too. There’s less advertising money on the internet today than in 2022 or 2021, so investors are more skeptical in business models that primarily rely on internet ad revenue.

      Throw in the fact that Reddit’s advertising platform is actually difficult to use and not particularly effective, and you have the problem where Reddit simply can’t charge the same rates that Facebook and Google can. That’s what’s going to kill the site, when advertisers decide it’s just not worth advertising on that platform.