Do we at this point have any substantial data on just how many users Reddit actually lost due to this?

Any resources would be greatly appreciated.

As a sidenote, I’ll add that they certainly lost my account the second I couldn’t use RiF anymore.

  • @[email protected]
    link
    fedilink
    English
    32
    edit-2
    1 year ago

    Like the satisfying “we killed reddit” probably isn’t going to happen.

    I used to think this until all of the recent blows they have had, such as the IAmA losses and Microsoft withdrawing their Minecraft support. With advertisers withdrawing and users leaving, I think they are going to have problems covering operating expenses in the near term that could lead to an implosion due to lack of funds.

    Before all this started, Fidelity’s Reddit investment was devalued pretty heavily and they have had profitability issues. Tech companies in general are having investor problems due to interest rates so Reddit have problems is going to really scare away any risk-adverse investors. They have proven they cannot control their user base (which is good news for users) which scares advertisers away from content unfriendly to their interests. They just doubled their employees from like 1000 to 2000 in the past couple of years, which just adds astronomically to their operating expenses.

    I think they make about $500 million in revenue and are still in the red. Even minor changes to this expense/income ratio can cause issues that make them suddenly insolvent with no one to bail them out.