Technology
This is the official technology community of Lemmy.ml for all news related to creation and use of technology, and to facilitate civil, meaningful discussion around it.
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That's just the thing, it has nothing to do with API or server cost. It's all about presenting ads and collecting user data.
Yea, it's clearly not about just money, because they could have fed ads via the API, or made it part of reddit premium for the user to keep using the API ad free. I can't say how many people would have rage quite anyway, but the way they're doing it doesn't give anyone who likes other apps any reason to pay reddit money, that's for sure. And does inspire people to leave.
I hesitate to say I have all these ideas that would have worked better because I haven't seen their research on their existing premium paid product or expected conversion rates for API access (at per user monthly subs), so maybe the research says they've got ALL the paying members they'll ever get and they need to force ever more ads instead for money - but given they've had years and years to think about this and have tried almost nothing makes me think they're either very unimaginative or just are bad at innovation or even just trying stuff other people already have except for tunnel vision on ads.