They’re lining up an IPO. Anything suggesting that they can’t maintain 5-10% real growth year after year (like other companies that investors could put their money) is truly damming. A sustained decrease in revenue, even a small one, is going to gut the IPO valuation.
I really doubt this will translate into a decrease in revenue, anyways. These numbers suggest very little sustained loss in traffic, and if that continues when the new API pricing kicks in they’ll probably come out ahead
These numbers suggest very little sustained loss in traffic
You’ll probably see a decent sized dip at the point where the changes go into effect. There are probably a lot of people using apps like Apollo until they can’t: once they can’t, certainly not everyone is just going to go install the inferior reddit app and start using it.
Also, it’s possible the relatively small drop will have more of an effect than might immediately be obvious. Social media sites like reddit, Twitter, etc aren’t really that profitable (when they’re profitable at all) — but people are willing to invest in them because they’re currently still experiencing growth. So in this case, growth has not only stopped, but reddit lost some ground.
I don’t know why people keep expecting this to go differently than twitter. Folks who are expecting Lemmy to kill Reddit are going to be waiting a very long time.
I was saying this when the protests started and was ignored.
Reddit nearly doubled their userbase after the site redesign. They know how many users don’t understand the “old” reddit ways and don’t give a shit. They don’t care that they’re losing the users that “built” the site. All they care about is engagement from Facebook-zombies who want an endlessly scrolling feed of bullshit to be angry about.
They know they have enough users who won’t care about the change to weather the storm. The quality of posts and comments will drop, spam will increase, but they don’t care as long as they have enough ad impressions to pull off the IPO and cash out.
Those numbers hardly describe a “plunge”. Much lower impact than I had hoped honestly
They’re lining up an IPO. Anything suggesting that they can’t maintain 5-10% real growth year after year (like other companies that investors could put their money) is truly damming. A sustained decrease in revenue, even a small one, is going to gut the IPO valuation.
I really doubt this will translate into a decrease in revenue, anyways. These numbers suggest very little sustained loss in traffic, and if that continues when the new API pricing kicks in they’ll probably come out ahead
You’ll probably see a decent sized dip at the point where the changes go into effect. There are probably a lot of people using apps like Apollo until they can’t: once they can’t, certainly not everyone is just going to go install the inferior reddit app and start using it.
Also, it’s possible the relatively small drop will have more of an effect than might immediately be obvious. Social media sites like reddit, Twitter, etc aren’t really that profitable (when they’re profitable at all) — but people are willing to invest in them because they’re currently still experiencing growth. So in this case, growth has not only stopped, but reddit lost some ground.
You’ve never stepped off the sidewalk and plunged down to the street?
I don’t know why people keep expecting this to go differently than twitter. Folks who are expecting Lemmy to kill Reddit are going to be waiting a very long time.
I was saying this when the protests started and was ignored.
Reddit nearly doubled their userbase after the site redesign. They know how many users don’t understand the “old” reddit ways and don’t give a shit. They don’t care that they’re losing the users that “built” the site. All they care about is engagement from Facebook-zombies who want an endlessly scrolling feed of bullshit to be angry about.
They know they have enough users who won’t care about the change to weather the storm. The quality of posts and comments will drop, spam will increase, but they don’t care as long as they have enough ad impressions to pull off the IPO and cash out.
Except we can be sure that the entire drop is due to humans deciding Reddit is dead. How much of the remaining traffic are bots?
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