Reddit API Changes Could Cost Popular App Developer $20 Million

Reddit API Changes Could Cost Popular App Developer $20 Million

These exorbitant costs put Selig and Apollo in a challenging position. Despite offering subscriptions, the app’s current revenue is insufficient to cover the steep API expenses. Selig explained that the average user makes around 344 API calls per day, requiring a subscription price increase to at least $2.50 per month (currently most subscribers pay $0.99 per month). Furthermore, this does not account for Apollo’s power users, who utilize the app at much higher rates, nor the app’s free users. Selig stated that even with the existing subscription-only users, he would face substantial monthly losses.

In response to Selig’s claims, a Reddit spokesperson stated that Selig was provided with “pricing per 1,000 API calls, not a monthly bill,” without revealing further details. The spokesperson explained that Reddit’s pricing is based on usage levels to ensure fairness and that they are actively working with third-party apps to enhance efficiency, which can significantly impact overall costs.