[tornato7]

Reddit should realistically charge for lost revenue rather than lost expenses. Instagram makes $50B annual revenue on 2 billion users, or around $25/user/year. I'm certain that Reddit is making nowhere near that per user, but they're probably pricing their API along their most optimistic projections.

[shbooms]

I can't find the source but in some of the communication Selig released between him and Reddit a few days ago, Reddit themselves confirmed that their pricing is based on lost oppurtunity cost per user, not just expenses