My assumption is (to the point of “3p apps are profitable, Reddit is not”) that their revenue is primarily ads based, and I doubt they sell out their full inventory every day. Thus the temporary...
My assumption is (to the point of “3p apps are profitable, Reddit is not”) that their revenue is primarily ads based, and I doubt they sell out their full inventory every day. Thus the temporary blackout has had no hit financially.
It’s at least partially an attempt to say “this doesn’t affect us” without lying but also concealing the underlying truth which is the good chance that USAGE and other metrics are way down.
That said, he’s also likely correct that the blackout won’t matter much if it’s only a two-day event. The bigger, harder to measure impact is how many people actually leave vs stay (a la Twitter). Decent bet even if droves leave it doesn’t affect CURRENT revenue (see above re:not selling out inventory), but if power users defect long-term it spells Bad Things for an IPO.
My assumption is (to the point of “3p apps are profitable, Reddit is not”) that their revenue is primarily ads based, and I doubt they sell out their full inventory every day. Thus the temporary blackout has had no hit financially.
It’s at least partially an attempt to say “this doesn’t affect us” without lying but also concealing the underlying truth which is the good chance that USAGE and other metrics are way down.
That said, he’s also likely correct that the blackout won’t matter much if it’s only a two-day event. The bigger, harder to measure impact is how many people actually leave vs stay (a la Twitter). Decent bet even if droves leave it doesn’t affect CURRENT revenue (see above re:not selling out inventory), but if power users defect long-term it spells Bad Things for an IPO.