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0 pointsrightbyte3y ago0 comments

If Reddit thinks Apollo can pay them 20 million a year, 10 million is certainly a nice deal for the app? I guess that is what he meant.

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7 comments · 1 top-level

Guest90812398123y ago· 6 in thread

It's not a deal though. Reddit says the users are worth $20 million in lost advertising. So either Apollo pays the money, the users move to another app that pays, or the users return to the official site and app. Either way, Reddit gets their $20 million.

Apollo has no leverage here unless there is strong evidence most of the Apollo users will leave Reddit if the app shuts down. I don't believe they will. The other potential leverage is the upcoming subreddit blackouts, or hinting at taking the Apollo users to start a competitor. The developer said they are not going to build a competitor (that was a mistake, they shouldn't have revealed that card), so I think the blackouts are the only chance of lowering API costs.

az2263y ago

The point here is, if Reddit thinks the user base is worth $20M per year, paying $10M to take over the app and implement ads on it, would be a steal. They’d return the money in 6 months. Usual payback periods are like 4-8 years. Clearly the $20M is BS because otherwise they’d done the deal on the spot.

markmark3y ago

They would only do the deal on the spot if that was their only option. But they have the option of spending $0 and having the majority of the users moving to the official app.

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quad_eye_oh3y ago

If it were worth $20M in lost advertising, buying the app and adding adverts to it would be a no brainer. The author was trying to call their bluff on user value, but communicated it very poorly.

jojobas3y ago

There's no way the bit about $20million in lost advertising is true. Going by user counts and reddit's total ad revenue you get about $1 million.

Aeolun3y ago

Also, people use Apollo so they don’t have to deal with the ads and terrible ux. They’re not suddenly going to go to the terrible official website or app.

1 more reply

rdedev3y ago

There are a lot of users who have decided to delete their account once 3rd party apps are gone. Some may come back but they won't be getting that 20 mil

j / k navigate · click thread line to collapse

0 comments

7 comments · 1 top-level

Guest90812398123y ago· 6 in thread

az2263y ago

markmark3y ago

They would only do the deal on the spot if that was their only option. But they have the option of spending $0 and having the majority of the users moving to the official app.

1 more reply

quad_eye_oh3y ago

If it were worth $20M in lost advertising, buying the app and adding adverts to it would be a no brainer. The author was trying to call their bluff on user value, but communicated it very poorly.

jojobas3y ago

There's no way the bit about $20million in lost advertising is true. Going by user counts and reddit's total ad revenue you get about $1 million.

Aeolun3y ago

Also, people use Apollo so they don’t have to deal with the ads and terrible ux. They’re not suddenly going to go to the terrible official website or app.

1 more reply

rdedev3y ago

There are a lot of users who have decided to delete their account once 3rd party apps are gone. Some may come back but they won't be getting that 20 mil

j / k navigate · click thread line to collapse