Reddit Of Perus Cuan Pengembang Application Up To Hundreds Of Billions, If You Want To Use The API

JAKARTA - Reddit has just announced major changes to its App Programming Interface access or API, which will charge big businesses for the use of their Reddit data.

Reddit's move worries all third-party app developers, including Apollo. This is because the proposed API price change is so high that it is difficult to maintain their services.

However, Reddit's decision also responded to the increasing use of its platform by Artificial Intelligence (AI) companies to train their Big Language Model (LLM).

"Our API data has empowered thousands of applications, such as tools to facilitate moderation, and utilities that help users keep up with their favorite topics, and games," said a Reddit spokesperson.

"Developers are very valuable to the Reddit ecosystem, such that we have just updated our Developer Platform," he added.

Reddit CEO Steve Huffman highlighted the corpus value of his platform data and stated the need to limit free access to large companies, which are scheduled to take effect on June 19.

According to Apollo developer Christian Selig, the change will cost him millions of dollars to keep his app running as it is under the new policy.

Apollo is known for its outstanding design and function beyond the original Reddit app. But to comply with the new API policy, Selig has to pay 20 million US dollars (Rp298 billion) per year. Selig's concerns stemmed from the large number of API requests Apollo received.

Where he made about 7 billion requests last month, while cost estimates present a frightening challenge.

Despite offering subscriptions, the existing app revenues are far from covering the upcoming API costs, as quoted from Engadget and GizmoChina, Thursday, June 1.

Selig revealed that the average user generates around 344 API calls per day, requiring an increase in subscription prices to at least US$2.50 per month.

Unfortunately, this adjustment failed to take into account super users who use applications at higher rates or app-free users. As a result, Selig must anticipate huge financial losses every month, even with an existing customer base.

Once again, a Reddit spokesperson said Selig was priced per 1,000 API calls instead of monthly bills, "Our price is based on the level of use we measure to make it as fair as possible," a Reddit spokesperson said.

"We have, and will continue, working with third-party applications to help them improve efficiency, which could significantly affect the overall cost."