Reddit’s New API Pricing Is Designed To Generate $1 Million For The App Through API

Reddit is enhancing its API pricing and there’s a very strategic reasoning behind that behavior.

A recent post was set out by the leading app where one developer who happens to be the leader of the firm’s Apollo client mentioned more details on the decision.

For starters, he was certainly not happy to see the pricing list that has come out right now. Moreover, he also stated how the entire plan would be a disaster for developers who own third parties.

During the start of 2023, the leading social media firm opted to close down the apps as they feared there would be some major restrictions in terms of their use.

Such a decision made a lot of developers super frustrated as they place great reliance on other apps that are designed to better the experience of a user. Moreover, it now seems that Reddit might be following some sort of a similar journey and that includes plenty of concerns arising in today’s developer society.

For a while now, we saw Apollo get quite popular in terms of the firm’s leading clientele. But the future linked to apps owned by third parties is hanging in the balance. We saw Christian Selig mention how such interactions that have to do with new pricings are putting out a mega increase in costs.

When you put things into perspective, you can better see how exactly the whole plan plays out. Around requests worth 50 million, we’re seeing costs go up to $12,000. Remember, Apollo produces nearly 7 billion requests every month and the estimated expenses seen each month would go up to $1.7 million and that’s equal to $20 million each year!

Let’s not forget how the pricing difference is immense when you look at Reddit and compare it with leading platforms. For example, API calls of nearly 50 million would come at a price tag of $166 when using Imgur.

When you compare that to Reddit’s pricing plan, it would be nearly 20 times greater.

Such new costs for API are putting out a major challenge that developers of third parties are having trouble overcoming. And even if they only put reliance on subscriptions, the average usage per month would come out to be $2.5 and that’s nearly double the figure seen for subscriptions.

So the general consensus of experts is that Reddit must find solutions before it’s too late.

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