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Thousands of Reddit communities go dark to protest company’s controversial new policy

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Thousands of Reddit forums are going dark Monday in one of the largest user-driven protests ever to hit the social media platform.

The voluntary blackouts, which restrict groups’ content from being publicly visible, affect Reddit’s largest online communities, including popular groups devoted to music, history, sports, and video games. The protests include more than two dozen subreddits with at least 10 million subscribers, as well as thousands of smaller networks.

Monday’s protests reflect widespread outrage over a Reddit plan to charge millions of dollars in fees for some third-party apps to continue accessing the platform. The plan has already forced several of Reddit’s top app-makers to announce they are shutting down because they cannot afford the new costs, which are set to begin as soon as next month.

The confrontation between Reddit’s corporate management and its users and developers marks a turning point for the platform as it reportedly looks to go public later this year. For years, Reddit users could browse posts, write comments and share pictures and video on Reddit from third-party apps.

Now, however, Reddit is seeking large payments from app makers to maintain that same level of access through its application programming interface (API), in a move apparently aimed at better monetizing Reddit users. Last week Christian Selig, developer of the popular Apollo app, said Reddit wanted to charge him US$20 million a year to keep his app running. He later said he has no choice but to close down the app.

Reddit further inflamed tensions with some in its developer community by appearing to misrepresent the details of its private conversation with Selig to suggest he had blackmailed the company. Selig, however, recorded his phone call with the company, a fact Reddit co-founder and CEO Steve Huffman later acknowledged in a Q&A with users.

Selig’s app is just one casualty of the coming changes. Critics of Reddit say the platform’s steep fees will kill off all third-party competition against Reddit’s proprietary app, which many users have derided as slow, buggy and inferior. They also fear the moves will decimate a volunteer community that relies on third-party tools to do the critical work of moderating Reddit forums — responsibility Reddit delegates to users of the site rather than to its own paid employees or to contractors, unlike some other large social networks.

Reddit’s defenders, including some users, have said it is Reddit’s right to set its own prices for API access, and that it is a business entitled to control how users access the data on the platform it provides. Some users have said they were not even aware it is possible to access Reddit from third-party apps.

“Reddit needs to be a self-sustaining business, and to do that, we can no longer subsidize commercial entities that require large-scale data use,” Huffman wrote in a Q&A with users Friday.

The battle echoes how Twitter, under its new owner Elon Musk, recently announced its own paywall for data in a bid to develop new revenue sources and to shore up the company’s struggling finances. Twitter’s move prompted an outcry from third-party app makers, misinformation researchers and public service account-holders who said the move would harm transparency and accessibility. Twitter has responded to the criticism by adding a new tier to its paid plan, but the move was instantly blasted as too little, too late.

Now Reddit faces a similar revolt, one that may prove even more effective in light of its greater reliance on community members for the site’s basic upkeep.

The stakes of the fight are not limited to Reddit alone. It takes place against the backdrop of a wider debate about who creates the value in social networks, and who gets to reap the rewards. And it reflects years of mounting public skepticism of large technology platforms that became economically dominant through the collection and exploitation of vast troves of other people’s personal information.

For Reddit and its future shareholders, the company’s value derives from the infrastructure the site provides for conversation. Operating that infrastructure, safeguarding what is stored there and charging for access to that proprietary data generates value that Reddit believes it should be able to keep.

For Reddit’s developers and moderators, however, the platform’s value derives not just from the company’s operation of the platform but also in the user-led moderation of the site’s countless forums, as well as the various tools and features that others have created to make Reddit more useable — for example, for the blind and visually impaired. Those solutions may not have been built by Reddit itself, but the company benefited from them in that they helped the site grow and reach wider audiences.

To a degree unlike Instagram or YouTube, Reddit owes its rise to the volunteer work of many of its users who bore the costs of developing features that the company did not see fit to invest in. In that respect, Reddit more closely resembles Wikipedia, the crowd-sourced digital encyclopedia whose volunteer editors are viewed as a vital resource.

Now, though, many users feel betrayed.

“If they’re going to start charging for API calls, [moderators] should start charging reddit for their time keeping the website functioning,” one user wrote. “This site ONLY functions on the backs of free labor from mods.”

Some have vowed to stop using Reddit, and others have suggested they may even scrub their entire account so that the company cannot monetize their historical activity.

“For a large number of Apollos users, it’s existence is the only reason we’re still using the platform,” another user wrote. “I’ve been here 15+ years, but have no intention of sticking around once Apollo goes dark.”

 

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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