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Well, they can be, but what if the regulations substantially shrink the market as a whole? May be more profitable to have 30% of a large market than 90% of a sm
by TulliusCicero 8y ago
Well, they can be, but what if the regulations substantially shrink the market as a whole? May be more profitable to have 30% of a large market than 90% of a small one.
- alex_c 8y agoA lot of tech industries seem to be winner-take-all, so aiming for 30% might not be a sustainable plan in many cases.
- AJ007 8y agoWell at least that’s what companies that are losing lots of money like to tell their investors. I’ve heard it many times and can’t think of any definite examples.
- bduerst 8y agoNot really. Vimeo shows that you can corner niche markets successfully. Profitability and growth aren't dependent on market dominance, even in tech.
- trjordan 8y agoYouTube Vimeo is more like 1% / 99%. By almost anybody's definition, that's winner take all. Vimeo aims for $100mil this year: https://www.reuters.com/article/us-iac-interactive-vimeo/iacs-vimeo-aims-for-100-million-in-revenue-this-year-ceo-idUSKCN1G71PN https://www.reuters.com/article/us-iac-interactive-vimeo/iac... YouTube Could be a $15 billion business this year: https://www.fool.com/investing/2018/02/18/youtube-could-be-a-15-billion-business-this-year.aspx https://www.fool.com/investing/2018/02/18/youtube-could-be-a...
- bduerst 8y agoAgain, success isn't measured by marketshare, but profitability and growth. Vimeo has 15% of the embedded market by domain, and has managed to be profitable. Even in your article it talks about how Youtube isn't exactly profitable, and is dragging down Google's average CPC for the business.
- mcv 8y agoA massive difference indeed, but by any other standard, $100 million is not bad at all.
- AJ007 8y agoThis isn't a good comparison. Netflix, Twitch, Snapchat, Facebook/Instagram are.
- castlecrasher2 8y agoIf YouTube can afford it but their competitors go out of business in the EU how would the market shrink? Regulations tend to shrink only the providers, not the consumers.
- chimeracoder 8y ago> If YouTube can afford it but their competitors go out of business in the EU how would the market shrink? "The market" is a statement about demand, not supply. The market can still shrink if the legislation goes through, because the legislation can have secondary effects that cause people to be less interested in consuming content on a tube-style platform.
- TulliusCicero 8y agoYoutube isn't really providing a necessity, it's providing an entertainment option. Consumers have lots of those. If it becomes very onerous or expensive to provide their content, then they (and other providers) may have to produce less of it, which would shrink the market.
- freeone3000 8y agoYoutube doesn't create video content. Youtube is a video content reseller - and if it can't afford to buy people's video content, it's unlikely anyone else can. You're shrinking the size of the video provider market!
- DoctorOetker 8y agoperhaps it is the common goal? less societal criticism/feedback, more top down determination of media?
- thatguy0900 8y agoI think most political commentators on YouTube that do it for money use patreon more than YouTube ads, many political subjects are demonetized automatically now. YouTube doesn't want to buy their content much regardless of if its able.
- AnthonyMouse 8y ago> May be more profitable to have 30% of a large market than 90% of a small one. Or in this case, 80% of a large market more than 100% of a small one.