I keep hearing the fact that Reddit isn't profitable, and I just can't wrap my head around it. One of the most hugely popular websites there is, that routinely gets huge amounts of revenue in Reddit Gold, isn't making a profit? I can see how that could get eaten up with administrative costs and stuff, but it's just so weird that they haven't found a way to make money from it. I guess that's why Ellen's starting the monetisation process by making the website more palatable to investors/advertisers and trying to turn IAMA's into videos (unconfirmed rumour).
If that's true, that's stupid.
I mean, maybe it would work. But it's a dumb risk. Why would you move a successful service completely out of the web aggregator realm, which you have cornered, into the Internet video realm, which Google dominates.
To compete with google, reddit would have to put a substantial amount of money, effort, and talented people into these AMAs. And still, Google has the massive advantage of being more convenient for the consumer than any other video service right now. I understand video ads probably pay more, but could the increased revenue from moving a service you already provide into a much more contested medium truly justify the cost and risk?
You want to focus on what you do best. That's where people are giving you money - and the more focused you are on other crap, the less focused you are on the thing which brings you money. Also, a lack of focus usually perpetrates disorganization and inefficiency throughout.
Why would that be the case? People who run boards of directors are usually really rich old white guys, often sitting on many such boards. I suppose it's possible but [citation needed] on that one.
I think it's a lot more likely reddit decided they needed to do some things that were going to be unpopular with the users and wanted a fall guy, so picked someone likely to be wildly unpopular to institute the wildly unpopular new policies. Then later they fire her and say it was all her.
At least everyone has an actual motivation there.
Or they could just be really stupid. Hard to say. They could just be old guys who learned literally nothing from digg.
I make the assumption because Ellen Pao, the person they chose to represent them, is 38. Also, it's a tech startup in San Francisco. (Edit- I forgot to mention the founders of the company are 31 and 32. The latter is currently the executive chairman of the board.)
I agree with you - what she wants for reddit probably is what they want for reddit. But to what end? The only reason I can think of to enact these policies is dogmatic, or to improve one's standing with like minded people.
I don't think it's a financial move - because every person you boot or shame off your website makes the site less prevalent, and damages brand loyalty. Unless advertisers were threatening to pull, it's illogical.