From the post:
> Me: "Because I assume the majority of it isn't server costs. I assume the majority is the opportunity cost per user."
> Reddit: "Exactly.""
Reddit's doesn't care about the $0.12, they care about the ads that doesn't get shown.
For reference, approximate global ARPU if converted to monthly for other social networks in 2022: Pinterest: ~$0.5, Snap: ~$1, Twitter: ~$1.6, FB: ~$3.3
This says the IPO roadshow will say Reddit has potential somewhere between Twitter and Facebook, which feels like the right sales pitch to me.
Iirc, the entirety of Reddit’s user base was used for the calculation. My guess is that Apollo’s subset of users are much more active (and probably more lucrative in terms of ads and user data) than probably 99% of all Reddit users.
Within the realm of folks who are willing to pay for a Reddit skin, imagine that very few of them will just give up the site once their skin is gone.
More likely is that someone comes in and makes a similar app and charges more for it. Power users and professional users will pay, and most of them will gladly pay a premium.
Not gonna lie… I think op said he charged $10 a year. I raised my eyebrows… that should probably be the bottom option of a three-tier monthly price matrix.
I think someone should buy this app and just price it properly based on value add. Im not sure what the various user profiles of Apollo are, but my guess is that there are a few profiles that can be profitably monetized even with the new Reddit API charges. Imho, Reddit is being shortsighted, but they do have a unique and large community.
Is that a matter of fact? How do you know it isn't higher? Also consider that it's not just advertising, it is also about funneling users to new products Reddit may want to develop
