News for hackers. Stuff that matters.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by goolz on Friday June 30, 2023 @08:43AM (#36533849)
Huffman, if nothing else, you have brought entertainment to my life recently with this debacle. Between Reddit and RHEL lately it’s just amazing how fast companies like to burn through good will. I used to use Reddit daily and now I refuse. If I was an advertiser I would be in full sprint (I believe many have left already).
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by time0ut on Friday June 30, 2023 @09:19AM (#36534339)
Yup, deleted my account, found an alternative for the one community I participated in, and try not click on links to reddit. It was easy as my primary way of interacting with reddit was apollo...
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by 128bytes on Friday June 30, 2023 @09:38AM (#36534679)
I don't even need to delete my account, I'd be suprised if I didn't get resuspended eventually for like the 16th time at some point this month either when they find out I'm still ban evading or when I inevitably say something the moderation doesn't like again
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by leovander on Friday June 30, 2023 @10:14AM (#36535306)
What are you saying in your comments if you are being suspensed/banned that many times? Time for a little self reflection?
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by 128bytes on Friday June 30, 2023 @11:11AM (#36536304)
One time a guy said disabled people should kill themselves for the good of the gene pool so I told him eugenicists should be publicly flogged and I got banned for inciting violence, and then I got IP banned when I told the moderator there's no point banning me because it's trivial for me to just use another account (in more colorful language). I'm also pretty homophobic & transphobic so I've caught a number of bans for that sort of thing before. My current account is on 1 warning atm cus I said something about feminism, I don't recall what it was.

I'm not sure why you would think being banned should prompt self-reflection? It's not like any of my reasons for believing the things I do has changed, and it's not like being banned from Reddit really has any negative consequences for me.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by LexiMax on Friday June 30, 2023 @11:51AM (#36537173)
Getting banned 16 times from a social space is a pretty clear message that you're not welcome. Equivalent behavior in meatspace would likely get you trespassed from the property or arrested.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by 128bytes on Friday June 30, 2023 @01:08PM (#36538553)
I'm not really interested in whether or not I'm welcome.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by tacocataco on Friday June 30, 2023 @12:10PM (#36537548)
I've been shadow banned several times for linking subreddits relevant to the discussion more then once in a comment section. So I started only sharing it once.

I've also been shadow banned for sharing large lists of on topic youtube links.

I believe I am running into some sort of spam prevention system, even though I see other users posting similar content. So my theory is that there is some sort of whitelist for this activity (i changed my username often when i used reddit), or I am running afoul with a certain moderator or admin.

Hard to tell when you're not even banned so there isn't a reason given to me. Wonderful system.

Back to imgur's user-sub I guess. Also I appreciate yall having me here as well.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by flutas on Friday June 30, 2023 @12:20PM (#36537736)
Reddit is very heavy handed with bans as of late.

I got IP banned across my older unused accounts, and my newer ones for mass editing, then deleting my comments to a message that was basically "reddit killed itself due to this API change".

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by n3m4c on Friday June 30, 2023 @08:49AM (#36533924)
Advertisers just aren't running away from Reddit. They were never there in the first place. Reddit's revenue is tiny considering it's userbase. And their data is categorized well, by default, for free by a volunteer force of moderators. And still they're not making money. How is that even possible?
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by covercash on Friday June 30, 2023 @09:36AM (#36534639)
>How is that even possible?

Reddit has never really had a competent CEO and that has never been more apparent than with Steve Huffman who has no background or skill as a leader. He also was never the one responsible for building and fostering the community side of things, that was Alexis’ department. One could argue that even as a developer he was second fiddle to Aaron. “What would you say you do here, Steve?” - The Bobs

I wouldn’t be sad if OpenAi or Google acquired Reddit as a source for training future models. Don’t try to optimize it for advertising, the value is in the human-created content.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by eli on Friday June 30, 2023 @09:45AM (#36534798)
I think the value of owning reddit as a data source for training AIs is vastly overstated.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by eli on Friday June 30, 2023 @09:44AM (#36534774)
Many (most?) of the categories are not desirable to advertisers and the user base is hostile to advertising.

A google ad that appears when someone searches "car insurance" is very different from an ad in a car insurance subreddit. It's also different from Facebook where you could target based on demographics.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by joshstrange on Friday June 30, 2023 @09:58AM (#36535023)
Are you joking? Reddit has hyper-focused niche communities, this should be a cake walk to advertise to. You can see exactly which book series I'm reading, which TV shows I'm watching, what my hobbies are, what my profession is, etc. If you can't figure out how to advertise to Reddit users then I can't help you.

In addition to ads they have Reddit Gold (or whatever their membership program is called, it's bad that I've been on the platform for a decade and I have no idea). They made the same mistake Twitter did with Twitter Blue: "Why would I subscribe?". At least Reddit gives you "No ads", Twitter gives you "Less ads". Ok, so no ads but the UI/UX of the official app is trash, it's messy and inconsistent. If they had said "Buy our subscription to keep using 3rd party apps" I would have paid in a heartbeat.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by eli on Friday June 30, 2023 @10:36AM (#36535659)
Not joking at all. Reddit has had a self-service platform that lets you target ads to subreddits for a very long time. Why do you think it's not popular?
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by disgruntledphd2 on Friday June 30, 2023 @11:26AM (#36536661)
If I had to guess, because their self service tools suck and they haven't invested in agency relationships.

If you want a successful internet ad business you need to do one of those, but preferably both.

That being said, it's wild to me that Twitter never managed to build a DR (i.e. selling clicks/conversions) business, so maybe Reddit is equally as badly managed (which again, is really surprising to me).

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by rchaud on Friday June 30, 2023 @03:03PM (#36540437)
> You can see exactly which book series I'm reading, which TV shows I'm watching, what my hobbies are, what my profession is, etc. If you can't figure out how to advertise to Reddit users then I can't help you.

These are very bold claims to make, considering that Reddit is at the bottom of every advertiser's priority list, despite being a lot cheaper.

Have you considered that Reddit users simply do not like being advertised to? Asking for a product recommendation on a message board is fundamentally different from seeing an ad for a product on said board.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by slipshady on Friday June 30, 2023 @03:49PM (#36541151)
> Have you considered that Reddit users simply do not like being advertised to?

Does anyone like being advertised to?

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by eli on Wednesday July 05, 2023 @11:30AM (#36601807)
Sure. All of HN is marketing for YCombinator.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by joshstrange on Friday June 30, 2023 @09:53AM (#36534939)
> How is that even possible?

Incompetence. Pure and simple. It was clear before Huffman really decided to go full-Elon and it's crystal clear now. He has no business running a company. The revenue that Reddit brough it in 2021 ($350M) should be able to cover the staff and servers for Reddit easily. Of course they got VC money which means you overhire and spend like no tomorrow which is partly to blame (bad leadership being the other). Reddit is just not that complicated and they only things they've put time/resources into in the last few years are gimmicks that no one uses (Chat) and/or gross cash grabs (NFTs) that also lie abandoned all while ignoring what users were asking for until it directly affected them (things like being able to wrest control of a sub from a mod). Also "better mod tools" is pretty much the same as "infrastructure week" to the last US administration.

But yeah, I have zero doubt they could be profitable but they can't be profitable-enough for investors so instead we get this shit.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by hersko on Friday June 30, 2023 @09:55AM (#36534970)
> Huffman really decided to go full-Elon

I bet investors wish he went full Elon.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by slama on Friday June 30, 2023 @09:58AM (#36535011)
Considering twitter's worth a third of what he paid for it, probably not

https://www.bloomberg.com/news/articles/2023-05-30/twitter-i...

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by dbg3386 on Friday June 30, 2023 @10:57AM (#36536015)
…And Fidelity deepened its valuation cut in Reddit again, today.

https://techcrunch.com/2023/06/30/fidelity-deepens-valuation...

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by E39M5S62 on Friday June 30, 2023 @12:11PM (#36537573)
That's the article that the comments are all about, yes.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by FormerBandmate on Friday June 30, 2023 @11:56AM (#36537284)
Tesla is a wildly different story because they're quickly becoming the Apple of cars. They've convinced all the American automakers to use the Tesla charger, they're setting themselves up to basically own road charging
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by tourmalinetaco on Friday June 30, 2023 @03:32PM (#36540902)
Keep in mind the $44B number was a joke offer he was forced to pay out. He knew it wasn’t worth as much, but he fucked around and found out.

According to NASDAQ, pre-purchase it was around $13B. And Elon claims it’s at $20B. So supposedly he has improved the net worth, but yes obviously he’s still $20B in the hole.

https://www.nasdaq.com/articles/what-is-twitters-net-worth

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by Terretta on Friday June 30, 2023 @09:56AM (#36534977)
I paid for Reddit Premium for an ad-free experience. Reddit makes no ad revenue from me. All these moves won't change that for Reddit.

Spez's claim that "the app" is "generating" API calls is nonsense. It's users like you and me that generate API calls using an https client that, in this case, speaks API. Reddit Premium users are their highest ARPU class, over 10x what they claim they can get from advertisers.

It therefore seems obvious to partner with premium app devs, to allow the apps to support Reddit Premium users as a perk of Reddit Premium. Subscribing to both Reddit Premium (paying for ad free access) and app (supporting the app developer) is not a problem for these users.

The Venn Diagram for these two premium spends is clear -- and Reddit is attacking it to no possible gain. There is no alternative business model on the table better for them (and their IPO price) than a premium user remaining a premium user.

By killing my ability to pay for Apollo, they will not gain a single ad view from me, because I pay to not see the ads already.

Further, they will now also lose 10 users worth of ad views, because I will no longer pay for Reddit Premium.

Instead, let Premium accounts access through API, Reddit's Premium user count will balloon, and quality apps will gain a new audience of ready-to-spend subscribers, all with no impact on Reddit's ability to sell ads which make strictly less money than Premium accounts.

(I am confused why this obvious solve is never discussed. News reporting is accepting the premise apps issue API calls instead of users, Spez's AMA is terrible, and community threads are missing this. Apollo dev also fails to help the press understand the framing that Apollo is a user agent and "the web" was intended for use by user-agents. None of this is coming up.)

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by refulgentis on Friday June 30, 2023 @10:41AM (#36535729)
The "obvious" solve was never discussed because:

- there's a vanishingly small minority who pay for apps

- Apollo volunteered to be the asserter of what 3Ps thought and they were extremely aggro

- It's a Solomon's baby situation, it's a worse outcome from all sides: 3P would be _more_ irate, their customer base gets slashed to nothing. Reddit needs to be able to charge for the API without having elaborate carve-outs for monetization schemes from years ago that didn't work

- People aren't thinking straight and are extremely aggressive in discounting others, sure, the user generates API calls. That doesn't mean the app doesn't make API calls

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by sterwill on Friday June 30, 2023 @11:27AM (#36536675)
My Reddit user experience is similar to yours. I paid for rif years ago because it's simple and fast, and I don't want to see ads. I'll gladly pay Reddit for an ad-free experience if I can use an app that's better than their own, but if they don't want to take my money, they'll lose me as a user.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by BoxOfRain on Friday June 30, 2023 @11:53AM (#36537222)
I'd love to be a fly on the wall at Reddit HQ at the moment, also I wonder what it's like to be a dev on the Reddit app too? Don't get me wrong I'm not downplaying how poor the app is (I've gone desktop-only based on how much I dislike it) but it can't be fun having the entire web panning your daily work every time it comes up.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by JohnFen on Friday June 30, 2023 @05:33PM (#36542636)
I'm guessing that the devs working on Reddit's app are fully aware of why people talk poorly about it. I'm further guessing that it's the way it is because of requirements being imposed on them rather than their own decisionmaking.

I also have to assume they're fine with it all, or they'd take their skills elsewhere.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by Rudism on Friday June 30, 2023 @11:52AM (#36537207)
While it is confusing why Reddit wouldn't offer it as an olive branch, I don't think allowing Reddit Premium subscribers to access the API for free would be an ideal solution. It would be extremely confusing for the majority of users if they had to both 1) subscribe to Reddit Premium in order to use 3rd party apps at all, and then 2) also pay (likely via a second subscription) to use each specific 3rd party app. Both Reddit and the app developers would probably have to spend a significant amount of user support effort to explain why users need to pay twice (or more if they want to use more than one app) to access Reddit.

Imagine it from the perspective of a user who is new to Reddit and downloads one of those apps off the app store (possibly paying money to do so). After they fire it up they'll discover that they can't even use it until they subscribe to Reddit Premium. Due to app store policies the app can't offer the opportunity to subscribe from within the app, so the best they can do (on Android, at least, Apple doesn't even allow this) is to direct the user to sign up for an account and buy a premium subscription on Reddit itself first. Assume they get past this hurdle and then discover after a week or two that in order to continue using that app they have to sign up for a new, separate subscription through the app store so that the developer can get paid. I imagine a not insubstantial number of users would get extremely frustrated by all of this and take their frustration out on either the app developers or Reddit.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by nnf on Friday June 30, 2023 @12:14PM (#36537619)
This could be solved by the app developers paying Reddit a portion of what they collect from the users. If Reddit wants $5/mo for each third-party app user, then the app developers could charge what they want above that amount. e.g., Apollo could charge $7.99/mo, of which Reddit gets $5.00 and Apollo gets $2.99 minus Apple’s App Store cut. Different developers could charge different amounts based on the value they provide, but Reddit would get the same amount per user from every app developer.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by PogoPuppy on Friday June 30, 2023 @03:57PM (#36541286)
This would require a substantial increase in workforce for Reddit. I’m not sure this is plausible.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by ericd on Friday June 30, 2023 @04:42PM (#36541961)
Why would it require an increase in the workforce? Automatic provisioning and charging monthly per API key isn’t rocket science. I’m sure they have enough engineers to tackle this if the revenue opportunity is significant.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by Terretta on Friday June 30, 2023 @10:31PM (#36545770)
> confusing for users to both 1) subscribe to Reddit Premium and 2) also pay via 2nd subscription to use each 3rd party app

Except that's already how it works, so no change. And users are not confused.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by onlyrealcuzzo on Friday June 30, 2023 @10:13AM (#36535277)
Ads don't work well on a site like Reddit.

That's why Digg 2.0 happened (and destroyed Digg) and why Reddit is hell bent on getting rid of Old Reddit and all 3rd parties that have any experience like it.

You need something like Facebook or Instagram to successfully sell a TON of ads (in social), which is the opposite of what Reddit is.

Either Reddit needs to realize they're not going to make FB money (spoiler, they're not going to accept that) or they're going to try to completely change their product to make FB money (spoiler, it's probably not going to work - if people wanted FB, they'd just use FB, not Reddit).

My crystal ball doesn't work. Who knows what will happen. That's just all my uncreative brain can imagine.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by jfrbfbreudh on Friday June 30, 2023 @12:19PM (#36537716)
Advertisers specifically avoid Reddit. Ask anyone who’s run an ad campaign on Reddit vs. literally anywhere else. The conversion rate is absolute trash.

Shockingly, the average Redditor doesn’t have (or isn’t willing to part with their) disposable income.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by lrem on Friday June 30, 2023 @08:52AM (#36533960)
What’s surprising to me is that usually goodwill burning happens after an acquisition or CEO/VP succession, but Reddit made a bonfire to illuminate their IPO.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by lolinder on Friday June 30, 2023 @10:17AM (#36535364)
Is there any evidence this valuation cut has anything to do with the API debacle? Discord slid by about twice as much percentage-wise in the same time, so it seems like Fidelity is seeing this as a market-wide change rather than factoring in anything to do with the reddit revolt.

There's also this, from the article:

> Worth noting that the vast majority of markdown in the value of Reddit and Discord holdings by Fidelity predominantly occurred last year.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by marcosdumay on Friday June 30, 2023 @12:09PM (#36537541)
Yes, if you go through all their numbers, reddit is the one they think is holding its value best.
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by chinchilla2020 on Friday June 30, 2023 @12:14PM (#36537631)
Can you explain why this burned so much goodwill?

Apollo is a for-profit app. They are using reddits technology, servers, and users for free to make money off their own advertisements.

Reddit isn't "losing" any money by losing apollo users, since it wasn't making any money in the first place.

This seems like a billing dispute between two companies, not a user issue. Reddit also announced that modtools will be allowed to use the API free of charge.

At the end of the day, most people log in to reddit once or twice a month. Those are the users that are being targetted by advertisers anyways. The power users and terminally online moderating staff are more of a headache for reddit than a benefit.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by rchaud on Friday June 30, 2023 @03:10PM (#36540564)
> At the end of the day, most people log in to reddit once or twice a month. Those are the users that are being targetted by advertisers anyways

You have this exactly backwards.

Ads work on repeat exposure, aka impressions. Social media companies have no other reason to optimize for user session length.

Also, someone who uses Reddit once/twice a month would not need to have an account to begin with. Even if they did, their lack of activity would be a negative for ad targeting.

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by chinchilla2020 on Saturday July 01, 2023 @04:53PM (#36555074)
Incorrect. Highly active and power users tend to adblockers and are unlikely to click since ad impressions don't mean anything to them. Casual users are the money maker.