I have a set of alerts saved in Explorer so I know when big things happen in the App Store, and this week, the alert was pointing at Reddit's revenue, which grew to its highest ever on the App Store last week.
Can you guess why?
Hint - It's not because they're following Twitter's lead and going to charge for API access...
Let's start with the numbers.
Reddit's daily average net revenue from the App Store, according to our estimates, is $10K. And that's net, meaning after Apple takes its cut.
On Tuesday, net revenue on the App Store grew to $560K, according to our estimates. Just that one day! It didn't stick and dropped fairly quickly to $25K after a week, indicating this was a temporary event and not a shift.
In that week, however, Reddit's iOS app brought in $1.3M of net revenue, according to our estimates. That's about a quarter of Reddit's entire 2022 revenue from the App Store. And again, that's net, meaning that's what Reddit is keeping after giving Apple more than $550K.
You're probably curious, what's the event?
Reddit released a new batch of Collectible Avatar NFTs.
Last year, Reddit got into the NFT game by letting artists sell their NFTs through Reddit. The first batches were fairly small both in terms of artists and NFTs, and sold out instantly netting Reddit new revenue highs.
Last week, Reddit rolled out the third batch with more NFTs from more artists, leading to Reddit's new best day of revenue ever.
The limited aspect of NFTs made them extra hot in 2021 and to some extent 2022 but that excitement seemed to have died out since. Until now!
Can NFTs become hot again? Is this the catalyst?
I don't really know, but it does look like more supply = more demand, so maybe.
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