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Reddit has an exceptionally low cost to scale ratio. Where are you getting the information that they're not profitable at this point (I know they weren't in the past)?

From the horse's mouth (18th of July, 2013):

Yep, the site is still in the red. We are trying to finish the year at break-even (or slightly above, to have a margin of error) though. [1]

1: http://www.reddit.com/r/TheoryOfReddit/comments/1ihwy8/rathe...

Last time they shared, they were spending ridiculous amounts of money on Amazon ec2 a month. Like ridiculous amounts.

Someday, the money will run out, and they'll have to try and turn a profit.

Their business model is fundamentally bad.

If those outdated figures of ~$50k/month are true, I wonder if they could move to their own infrastructure or dedicated and turn some of those savings into getting from red to black.


We operate a dozen of our own colos, with a virtual colo on AWS for insta-scalable multi-region redundancy, and an Amazon "colo" costs the same as about eight of our own when spun up and serving at least a gigabit of traffic.

However, the difference is less if you're going from zero sys admins to 24/7 says admins. I'd SWAG the crossover is once your AWS budget exceeds 4 full time sys admins willing to do shift work.

That wouldn't address the lack of a sustainable business model.

Being a forum where low wage/students/anti-corporate/anti-advertising types go and share memes is the elephant in the room problem.

Just because reddit has a lot of anticorporate types doesn't mean they don't also have a lot of pro-corporate types, too.

For example, I wouldn't be surprised if the Internet's largest right-wing community turned out to be one of the subreddits.

/r/all is the internet’s largest right-wing community, on any manner of subjects from race relations in America, to multiculturalism in Europe, to feminism and women’s rights anywhere. Last time I visited was around the Zimmerman verdict, and I couldn’t decide whether the conversation on reddit more closely resembled Free Republic or Stormfront—the major difference being that neither of those other right-wing communities can match redditors in their hatred and fear of women.

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