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Free and guarantees loss of users.
Why not buy the app that's superior to Reddits app (guaranteeing users stay), catch additional revenue from modest charge for API that slowly increases (filters out competing apps and offsets cost to purchase best app)?
Those users are guaranteed to leave either way, unless they maintain all the 3rd party apps they buy, but why would they do that?
I mean this is already what they are doing (without the slowly part).
Buy the best 3rd party app (RIF or Apollo)
They started way too high on the new API charge. It could be some real 4D chess if they started this high just to elicit outrage and offer a lower cost for API thats easier to stomach.
Make best 3rd party app the official Reddit app via acquisition. Slowly increase API to kill 3rd party rivals and ensure user migration to best 3rd party app that is now official Reddit app. Problem solved. I think.
They're not going to kill their own app in favor of Apollo.
From what I understand, they already went the path of buying the best 3rd party app in the past and all they did with it is kill the app and try to migrate their users to their current app.