ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Why Are Thousands Of Reddit Communities Locking Out Users For 48 Hours?

The outrage is over a Reddit plan to charge millions of dollars in fee for some third-party apps to access the platform. 
UPDATED JAN 22, 2024
Cover Image Source: Getty Images | Jerod Harris
Cover Image Source: Getty Images | Jerod Harris

Thousands of Reddit forums restricted user access on Monday to protest against the company’s plan to charge for access to its data. The voluntary blackouts restrict the group's content from being publicly visible and affected Reddit's largest communities including popular groups devoted to music history, sports, and video games.

The protest includes more than 12 subreddits and at least 10 million subscribers as well as thousands of smaller networks within the social media platform, as per CNN Business. 

The outrage is over a Reddit plan to charge millions of dollars in fee for some third-party apps to access the platform. As per Reuters, Reddit is looking to go public later this year. 

Pexels | Brett Jordan
Pexels | Brett Jordan

Reddit announced in April that it would start charging third parties for its API, a software framework that allows any data provider and an end user to communicate. From July 1, Reddit plans to charge developers that require higher usage limits $0.24 for every 1,000 API calls or less than $1 per user every month.

Why Is Reddit Implementing A Subscription Model For Their API?

Pexels | Brett Jordan
Pexels | Brett Jordan

One of the many reasons behind this is generative artificial intelligence. Reddit's forums have loads and loads of data that can be used to effectively train tools like ChatGPT, the Microsoft-backed Open AI software. Reddit CEO Steve Huffman said in an interview with the New York Times in April that "Reddit corpus of data is really valuable" and he doesn't want to "need to give all of that value to some of the largest companies in the world for free".

Who Is Going To Get Affected and When Will The Reddit Blackout End?



 

The moderators are determined to protest for at least 48 hours during which the forums will go private and millions of users will be barred from accessing the subreddits. 

Subreddits such as r/Music, r/gaming, r/science, and r/todayilearned -- all with more than 30 million subscribers -- are protesting. Some like r/Music plan to protest indefinitely.

Is Reddit The only Social Media Site To Restrict Third-Party Clients?

Not really, Elon Musk's Twitter restricted all third-party apps and clients and even updated their rules for developers accessing their API. The new rules say that the devs cannot use the company's API to create a substitute or similar service or product to the Twitter Application".



 

The idea of the social media platform was conceived by Steve Huffman and Alexis Ohanian on June 23, 2005. The two were studying at the University of Virginia at the time and began building Reddit just for kicks.

American start-up funder Y Combinator gave Reddit around $100,000 in 2005. Later that year, Reddit merged with Infogami and started working with Aaron Schwartz.

Schwartz rewrote Reddit's codebase once again, this time using the program he had made for Infogami.

The sites struggled quite a lot but after the merger, they were able to take off, as per The Fact Site. 

Reddit began with only a few subreddits. This allowed users to categorize the information in a precise way. 

Once a subreddit is created, it remains on the site forever. Despite a slow start, the company has emerged as one of the most visited social media sites. 

Huffman and Ohanian left Reddit in 2009 only to return five years later. Ohanian became the full-time executive chairman while Huffman became the company's chief executive. The company launched a new version in 2018.

MORE ON MARKET REALIST
After painfully losing out by 5 points the previous night, the Baccus family made a comeback
6 hours ago
Harvey's anecdotes made it clear that he had been through some steamy situations.
8 hours ago
Michael Green isn't worried about AI stocks, as a passive investment bubble is a "more salient" risk
9 hours ago
The AI assistant app seems to have benefitted from the headlines that emerged after Trump's rant.
11 hours ago
AT&T, Verizon Wireless, and T-Mobile have their own spam blocking tools for their subscribers.
11 hours ago
The newly introduced Trump accounts have the same tax advantages as IRAs.
3 days ago
While the IMF warned the current administration's policies could make deficits worse.
3 days ago
Fans couldn't believe how a contestant failed to secure just 31 points out of the 200 that his partner had scored.
3 days ago
While the answer touched Harvey's heart, he was sure nobody would do that for a celebrity.
3 days ago
Trump's claims were both partially true and ridiculous, according to industry analysts.
3 days ago
People on social media accused the actor of being a hypocrite, urging him to step up first.
4 days ago
Trump's pledge sounds empty as OBBBA has shaved over $1 trillion in social safety nets funding.
4 days ago
While her answer wasn't technically wrong, the survey begged to differ.
4 days ago
After getting three zeros on the board, Nori had the impossible task of winning with two answers
4 days ago
An underlying stock rotation has triggered a potential countdown to a crash.
5 days ago
Harvey couldn't pass up the opportunity to take a jab at J-Lo's relationship status
5 days ago
While the president championed his policies, the ground reality tells a woeful tale.
5 days ago
Companies will be in no rush to reduce prices as trade uncertainty continues, the bank noted.
6 days ago
Trump threatened to use different laws to punish countries that back away from negotiated deals.
6 days ago
Despite his experience, Harvey didn't know much about the prep that goes into competing on the show
6 days ago