Comment on YouTube Tests Showing Ads When You Pause a Video, Calls it ''Pause Ads''

• CileTheSane@lemmy.ca ⁨6⁩ ⁨months⁩ ago

  Bandwidth is expensive.

  Google does not make a lot of information available on their operating costs, but from what I was able to find it looks like people are estimating Google spent over $2 billion for servers and bandwidth in 2018 for its network services including YouTube.

  YouTube generated $31.5 billion in ad revenue in 2023.

  YouTube is covering it’s costs just fine and doesn’t need to force more ads on everyone in order to turn a profit.

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  • Tja@programming.dev ⁨6⁩ ⁨months⁩ ago

    Alphabet has a profit margin of 25% and most of it is adsense, so I can guarantee that YouTube does not have a 93% profit margin.

    First, the revenue is split and more than half goes to the creator. Plus you have other costs than bandwidth and servers, which I listed above.

    Mind linking a source for the 2B? Seems low, I’d love to see how much they pay per GB.

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• Knock_Knock_Lemmy_In@lemmy.world ⁨6⁩ ⁨months⁩ ago

  I hear this, but I’d like some stats, particularly considering I’m already paying for my bandwidth.

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  • Tja@programming.dev ⁨6⁩ ⁨months⁩ ago

    YouTube (and every datacenter user) needs to pay per GB sent to the internet. And it gets quite expensive, like 5 cents a GB. That’s like one hour of 720p content.

    I for one, watch like 3 hours a day, at least one hour of that is 4k on the TV. So I cost YouTube like 20 cents per day let’s say, 6 bucks a month, 72 bucks a year.

    Not counting power, ac, storage, compute for compression, redundancy, staff, etc.

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    • CileTheSane@lemmy.ca ⁨6⁩ ⁨months⁩ ago

      I for one, watch like 3 hours a day, at least one hour of that is 4k on the TV. So I cost YouTube like 20 cents per day let’s say, 6 bucks a month, 72 bucks a year.

      And for $130 a year you could get it ad free! Only an 80% mark up!

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      • Tja@programming.dev ⁨6⁩ ⁨months⁩ ago

        I already get it ad free. I have a premium family plan, works out to about 5 euros per person for our 4 person family. Per month.

        As I mentioned, this is just bandwidth. Add servers, storage, power, real estate, staff… And then give like 55% or whatever to the creators. The 80% markup is way off for myself, youtube might actually be losing money on my outlier case. My kids and wife are probably much more profitable.

        For context going to the movies is almost 20 euros per person just for the ticket, for 1 hour and a half of entertainment. Not including snacks, drinks, gas, parking… I wonder if people here also sneak into the movies because they are annoyed at the cashier.

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