The Corporate Perspective

I won't delve into the specifics of Reddit's recent controversies, but the crux of the matter lies in the company's decision to monetize its previously free API, now charging 24 cents for every 1,000 GET requests. For those unfamiliar with API pricing, this is quite steep, bordering on exploitative. Comparatively, this cost ranks high on the API pricing scale. As a result, numerous subreddits have either gone private or filled their spaces with nonsensical posts in protest. The free API had facilitated the creation of valuable third-party apps like Apollo, Sync, Red Planet, and Reddit is Fun, which enhanced the user experience for both users and moderators. With the new pricing model, these developers face the grim reality of shutting down their operations despite existing contractual obligations.

If this decision seems misguided to you, you're not alone. Many Reddit users and technology critics share this sentiment, likening it to Twitter's controversial API charges. Many of these third-party apps are often operated by individuals or small teams who lack the financial resources to maintain and develop their offerings under such conditions.

Nonetheless, managing a corporation, especially one eyeing public offerings, necessitates consideration of various factors. If WeWork's Adam Neumann has taught us anything, it’s that flashy presentations and vague promises will not suffice to win over investors. Beyond advertising revenue, companies like Reddit must explore additional avenues to bolster their financial outlook.

Some may argue that third-party clients represent a mutually beneficial arrangement, but the situation transcends mere GET requests.

The Product Owner's Insight

A competent product owner will emphasize the importance of user engagement, increasing signups, and ensuring customer satisfaction. In an Agile framework, this often relies on continuous feedback and user-generated data.

In Reddit's case, two significant feedback sources are evident. The first is the platform itself, which unfortunately does not garner much positive feedback. Even as a casual observer, I can identify numerous deficiencies within the site. Surprisingly, it continues to attract users—largely thanks to third-party applications.

This leads to the second feedback source: the very applications users prefer over Reddit's native experience. For any product owner, evaluating these applications reveals a plethora of features that Reddit lacks. It is logical for Reddit, particularly as it prepares for an IPO, to incorporate successful third-party features directly into its platform. After all, investors are interested in Reddit, not in third-party apps utilizing its APIs.

From a product owner's perspective, integrating valuable features from proven third-party apps into the core platform is a sound strategy—something Apple frequently does.

The Designer's Perspective

While I’m not a designer at Reddit, I can imagine there might be some hesitance to admit it. Over time, many design proposals likely faced rejection, resulting in a platform that is neither user-friendly nor visually appealing, resembling a disjointed piece of outdated software. Even Quora, which has its design flaws, surpasses Reddit in terms of aesthetic appeal.

Good design may not directly impact product valuation, but it can distract from larger issues and prevent users from migrating to third-party solutions. Given the current state of Reddit's design, any designer would undoubtedly identify countless improvements, from establishing a cohesive style guide to entirely overhauling its appearance.

In terms of design, Reddit must evolve and differentiate itself to remain relevant in today's tech landscape.

The Software Engineer's Perspective

Turning to the API issue, it is reported that Apollo alone generates around 7 billion GET requests each month, a staggering figure. Estimating costs based on 2023 AWS pricing, this amounts to approximately $28,000—far less than the 1.66 million Reddit aims to charge.

However, GET requests entail more than just server costs. The services are developed and sustained by Reddit's engineers, who also collaborate across various functional teams. While I am not well-versed in Reddit’s engineering structure, it’s important to note that engineering work typically requires more than just engineers to be compensated. Despite Reddit's average Glassdoor rating of 3.7, salaries remain competitive, with software engineers reportedly earning around $240,000 on average.

This raises the question of whether Reddit prefers to retain its engineers rather than dismiss them, a sentiment likely shared by the engineering staff.

Conversely, third-party app developers face a dilemma; while building a business on a free API is risky, market gaps often entice them to proceed. This is particularly precarious for platforms like Reddit. In contrast, larger companies like Apple typically acquire successful applications, as demonstrated by their purchases of Shazam and DarkSky. Reddit, however, lacks such incentives, aside from potential accessibility improvements.

This scenario exemplifies the classic buy versus build dilemma for both parties. Reddit sees little reason to acquire while third-party apps invested heavily in a platform that offered no guarantees.

The Customer's Dilemma

Amidst this upheaval, some users actively seek to bring down Steve Huffman’s "empire," while others consider such actions unnecessary, akin to airing dirty laundry in public. A conflict between a CEO and their product's user base inevitably raises eyebrows.

Subreddits going dark—rendering others' content private without consent—can be likened to content theft. Imagine a Medium publication unpublishing your articles because its owners disagree with a particular figure. Such actions would not be well-received, and many Reddit users find themselves caught between supporting either Reddit or a small third-party developer. Most will likely side with the platform, as those apps rely on Reddit and its API for functionality. When Medium introduced its Partner Program, some publications reacted similarly, but the outcome demonstrated users' preference for established platforms over their own grievances.

However, Reddit falls short regarding one critical aspect: accessibility. Given its popularity, it is surprising that Reddit has not prioritized making its platform accessible. Third-party applications have stepped in to provide accessible experiences for the 15% of users who desperately require them. Yet, it's essential to acknowledge that accessibility is not solely the responsibility of developers; users must also upload content in an accessible format.

While Reddit has neglected accessibility, third-party app developers claiming to fill this gap do not absolve Reddit of its responsibilities. From a legal and IPO perspective, it matters little if third-party apps are accessible when Reddit itself remains inaccessible. Steve may decide to overlook these apps for now, but he will undoubtedly want Reddit to achieve WCAG compliance swiftly, ideally before its valuation process.

The Bigger Question: Should Reddit Exist?

In light of these developments, one must ponder whether Reddit has a place in the internet landscape of 2023. Is there still merit in web forums? Opinions will vary. Personally, I have distanced myself from forums, including Macrumors, due to two primary reasons:

• GDPR Challenges: Forums grapple with GDPR regulations, particularly users’ rights to be forgotten. While I understand that removing parts of discussions can render threads incoherent, users should retain ownership of their posted content and have the right to leave and take their contributions with them.
• Content Focus: I found myself spending too much time crafting lengthy replies on tech threads instead of sharing them as articles on Medium, which offers a more streamlined and engaging platform for discussions.

Despite my personal stance, there remains a legitimate need for platforms like Reddit in today's world. Online communities play a vital role, yet we appear to be moving towards a monetized content model, where even social media interactions can yield financial returns. While I’m not opposed to this, it raises questions about how forums like Reddit can thrive when advertisement revenue may not be a sustainable model.

Ultimately, I find myself less hostile towards Reddit's attempts to secure a favorable IPO valuation compared to many of its users and critics. It’s easy for those who have never owned or managed a company to criticize, and while Reddit’s CEO may come across as arrogant, it’s a trap that can ensnare anyone managing a platform with 52 million daily users. Many CEOs develop a certain level of confidence, which is perhaps an inherent aspect of leadership.

Steve Huffman’s assertion holds some truth; this storm will eventually pass. The real question is, what will remain once the dust settles?

Attila Vago — Software Engineer striving to enhance the world, one line of code at a time. A lifelong tech enthusiast, writer of code and blogs, advocate for web accessibility, LEGO aficionado, and vinyl record collector. Enjoys craft beer! Read my Hello story here! Subscribe and/or become a member for more insights on LEGO, tech, coding, and accessibility! For those who read less frequently, I also share thoughts on random topics and writing.