• WatTyler@lemmy.zip
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    8 months ago

    Can someone explain to me what Reddit’s costs are supposed to be? It’s not like they have to pay licences for things like music or have to host insanely large media files. Their content generation and moderation is free. For a long time their website was barebones and they didn’t have to make an official app. I can never even recall them advertising until recently.

    • HobbitFoot @thelemmy.club
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      8 months ago

      You still have massive server costs. You have to maintain the massive dynamic comment database along with pictures now.

      They are still paying for developers to make new things, both on the front ends and the back end.

    • GissaMittJobb@lemmy.ml
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      8 months ago

      Probably basically all operational expenses, with a minority being cloud expenditure and a majority being salaries for employees, if I had to guess.

      I’m assuming that spez gets most of his pay in the form of stock options which doesn’t really cost the company anything real.

    • leetnewb@beehaw.org
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      8 months ago

      There isn’t off the shelf software to run things like Reddit, and the work to make that happen is pretty staggering. That isn’t to say there isn’t frivolous spending there - I have no idea.

      Lemmy has been developed since 2019 and the software crumbled when network-wide users spiked into the ~75,000-ish monthly range when some vocal Reddit users sought greener pastures over the app/api issue last year. A lot of talented new developers contributed scalability fixes that were obvious to them (but not obvious to the main devs), and we now have the largest Lemmy server handling ~10,000 monthly users without crashing. The work that has gone into making Lemmy, an open-source Reddit alternative written in Rust (vroom vroom) handle the waning spike of Reddit users fleeing, was substantial. Look through the lemmy github issues discussions page and merged closed contributions/discussions for that journey. Those people were largely contributing time and expertise for nothing in return. Imagine paying a market rate to all of the people who contributed substantial time into the betterment of Lemmy. By the way, Reddit was open source: https://github.com/reddit-archive/reddit

      Takeaways so far: this is a hard problem, even today with faster software and hardware - and Lemmy needed a diverse set of contributors to get its largest server stable at 10k monthly and ~50k across the network.

      Reddit had 46,000,000 monthly active users in 2012, ~7 years after launch. Reddit has 330,000,000 monthly active users today. My guess is that Reddit employs a lot of smart software engineers that are needed to contribute solutions that allow the site to serve an ever-growing user count without major outages with new features rolled in. Meanwhile, the vast majority of Reddit users will never pay a thing to Reddit and it isn’t a good platform to deliver advertising through.

      My point: It is easy to gloss over the staggering amount of work, talent, and skill that goes into supporting a site that operates at this scale. Reddit is around the 10th largest site in the US (8th if you exclude search engines) and 12th globally excluding search engines.

      • WatTyler@lemmy.zip
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        8 months ago

        Sorry for my delayed reply but this was exactly the explanation I needed and I’m grateful for the effort you put into writing it.