Reddit recently announced that it will be charging for access to its API. This could affect the developer of one of Reddit's most popular third-party apps. The developer of the Apollo for Reddit is expressing concern about the new API pricing, stating that the changes will impose an outrageously high cost, in the millions of dollars, to keep the app running.
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Reddit recently changed its API rules, explaining that it was due to the rise of artificial intelligence companies using its platform to train large language models. “ Reddit’s dataset is really valuable ,” Reddit CEO Steve Huffman told the New York Times . “ But we don’t need to give all that value to some of the biggest companies in the world for free .”
Now, it looks like independent developers will also have to pay for the more expensive new plans that will be implemented on June 19. Although Reddit has not officially announced the cost of its API, Christian Selig, the sole developer of the Apollo app, said he will have to pay $20 million to keep his app “unchanged” under the new policies.
"50 million requests cost $12,000, which is way more than I could have ever imagined," he wrote in a Reddit post, citing numerous conversations he had with Reddit representatives about the upcoming API changes.
This pricing is a problem for Selig and Apollo, who have received positive feedback for their design and additional features on Reddit and are in a difficult situation. Although the app has subscriptions, its internal revenue is not enough to cover the sudden cost of the API. It is reported that the average user calls the APIs about 344 times a day, and this requires an increase in subscription prices to at least $ 2.50 per month. Currently, most subscribers pay $ 0.99 per month. Moreover, this does not apply to Apollo's power users who use the app at higher prices or users of the app who use it for free.
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In a statement, a Reddit spokesperson said that Selig received “billing per 1,000 API calls, not a monthly bill,” but declined to share specifics. “Our pricing is based on usage levels that we measure to be as fair as possible,” the spokesperson said. “We have, and will continue to, work with third-party apps to help them improve their efficiency, which can significantly impact overall costs.”
It’s worth noting that there are striking similarities between Reddit’s new developer rules and the drastic changes made to Twitter ’s API policies by Elon Musk . Twitter banned third-party client applications and simultaneously increased the price of its API, which made it difficult for researchers and businesses that depended on higher levels of access to Twitter’s data
It should be noted that Reddit's attitude towards developers wasn't all that bad from an external perspective. Selig says he had many conversations with Reddit and their representatives were extremely communicative and polite about the changes.
“We’re committed to fostering a developer ecosystem around Reddit — developers and third-party apps can make Reddit better,” the spokesperson said. “Our Data API has powered thousands of apps, like tools to facilitate moderation and utilities that help users stay informed about their favorite topics and games. Developers are incredibly valuable to the Reddit ecosystem, so much so that we recently updated our developer platform.”
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However, Selig said he's unsure how he'll handle the changes. "I hope it goes without saying that I don't have that kind of money," he shared on Reddit. "This is going to take some thinking."
