This isn't over one app. Many (most?) the app makers have noted the change is unsustainable for them.
One way to look at it is that Apollo, the app you're referencing that was able to charge $10 a year, would have to charge 2.5 times as much just to cover the access fees, and not any of their own overhead, much less allow for profit.
The issue here is that the ARPU calculation and assumptions are wrong. Is reddit losing out on that entirely if someone comes to them from a separate interface but still is served through them? Also, it's just too optimistic. Reddit has revenue of less than a dollar per site user (or maybe slightly more than a dollar now?). Most references I'm seeing showed reddit with an ARPU of well under $1 in 2021, closer to half a dollar. Are we expected to believe there's been a 40x increase in a year, or that after all the years reddit has functioned they'll be able to achieve that in the near future?
One way to look at it is that Apollo, the app you're referencing that was able to charge $10 a year, would have to charge 2.5 times as much just to cover the access fees, and not any of their own overhead, much less allow for profit.
The issue here is that the ARPU calculation and assumptions are wrong. Is reddit losing out on that entirely if someone comes to them from a separate interface but still is served through them? Also, it's just too optimistic. Reddit has revenue of less than a dollar per site user (or maybe slightly more than a dollar now?). Most references I'm seeing showed reddit with an ARPU of well under $1 in 2021, closer to half a dollar. Are we expected to believe there's been a 40x increase in a year, or that after all the years reddit has functioned they'll be able to achieve that in the near future?