Comment on YouTube Tests Showing Ads When You Pause a Video, Calls it ''Pause Ads''
CileTheSane@lemmy.ca 6 months agoBandwidth 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.
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.