I never understood why Reddit couldn’t just have kept the API free, and embedded ads in the feed directly. They would get their ad revenue, and third party developers would actually help them make money.
Probably because it would be easy to filter those ads from the feeds.
The facts were businesses like Apollo built themselves upon Reddit's value-proposition. The content is what the users wanted - and Reddit had the content. Apollo's value-add was making that content more accessible to users - at Reddit's expense.
We can debate how Reddit handled the rollout - but the facts are businesses like Apollo offered little to Reddit in exchange for Reddit's content.
People operating businesses based on someone else's data (moat) should have an exit plan for when the free ride ends.
From a legal point-of-view, yes, Reddit had control of the data and chose to alter the deal. And the app developer did have an exit plan: shutting down the app and refunding subscribers. The developer appears to have weighed his options, considered the strategy Reddit was communicating with the rollout of their API changes, and concluded that this was no longer a viable market.
Many people expressed strong opinions about what the developer should do, but he appears to have remained calm and rational throughout the experience, and chose to walk away when it made sense.
However:
> The content is what the users wanted - and Reddit had the content...
> ...in exchange for Reddit's content...
> ...operating businesses based on someone else's data (moat)...
Let's not fool ourselves: the data was created by and for the users, and it never belonged to Reddit in any moral sense. It's a regrettable externality of our legal framework that Reddit was able to withdraw their free API and prevent the community from accessing its own data how it saw fit.
> The Services may contain information, text, links, graphics, photos, videos, audio, streams, software, tools, or other materials (“Content”), including Content created with or submitted to the Services by you or through your Account (“Your Content”). We take no responsibility for and we do not expressly or implicitly endorse, support, or guarantee the completeness, truthfulness, accuracy, or reliability of any of Your Content.
> By submitting Your Content to the Services, you represent and warrant that you have all rights, power, and authority necessary to grant the rights to Your Content contained within these Terms. Because you alone are responsible for Your Content, you may expose yourself to liability if you post or share Content without all necessary rights.
> You retain any ownership rights you have in Your Content, but you grant Reddit the following license to use that Content:
Twice you have deliberately left out literally the most important bit. I'll quote it for you:
> When Your Content is created with or submitted to the Services, you grant us a worldwide, royalty-free, perpetual, irrevocable, non-exclusive, transferable, and sublicensable license to use, copy, modify, adapt, prepare derivative works of, distribute, store, perform, and display Your Content and any name, username, voice, or likeness provided in connection with Your Content in all media formats and channels now known or later developed anywhere in the world. This license includes the right for us to make Your Content available for syndication, broadcast, distribution, or publication by other companies, organizations, or individuals who partner with Reddit. You also agree that we may remove metadata associated with Your Content, and you irrevocably waive any claims and assertions of moral rights or attribution with respect to Your Content.
It's theirs the moment you click post - and there's nothing you can do about it.
The content wasn't Reddit's, it was simply hosted on Reddit. It was actually owned by the users, many of whom were using apps to benefit Reddit via additional content and moderation.
I have actually. The way it's always worked for Reddit (and social media in general) is that you provide them a license to do things with the content, but the site doesn't take ownership of the content. This isn't a meaningless distinction either. It's a key part of Reddit's legal shield from all the illegal content they unknowingly host, via things like section 230.
> The Services may contain information, text, links, graphics, photos, videos, audio, streams, software, tools, or other materials (“Content”), including Content created with or submitted to the Services by you or through your Account (“Your Content”). We take no responsibility for and we do not expressly or implicitly endorse, support, or guarantee the completeness, truthfulness, accuracy, or reliability of any of Your Content.
> By submitting Your Content to the Services, you represent and warrant that you have all rights, power, and authority necessary to grant the rights to Your Content contained within these Terms. Because you alone are responsible for Your Content, you may expose yourself to liability if you post or share Content without all necessary rights.
> You retain any ownership rights you have in Your Content, but you grant Reddit the following license to use that Content:
The facts were businesses like Apollo built themselves upon Reddit's value-proposition. The content is what the users wanted - and Reddit had the content. Apollo's value-add was making that content more accessible to users - at Reddit's expense.
We can debate how Reddit handled the rollout - but the facts are businesses like Apollo offered little to Reddit in exchange for Reddit's content.
People operating businesses based on someone else's data (moat) should have an exit plan for when the free ride ends.