3 ms·
Google doesn't report anything but revenue on Youtube, so we don't know the margin. Most of the revenue is dispersed to content creators, and infrastructure cos
by acituan 6y ago
Google doesn't report anything but revenue on Youtube, so we don't know the margin. Most of the revenue is dispersed to content creators, and infrastructure costs must be huge, so more likely than not it is a loss leader.
- nerfhammer 6y agothe purpose of a loss leader is to bring you into a store to buy other presumably more profitable stuff. what is youtube leading people into?
- 6AA4FD 6y agoMy (naive?) assumption is that user data is what is being "led into the store" aka being collected and fed into the rest of the ecosystem.
- acituan 6y agoYouTube is mainly a 3-way market; the content producer, the content consumer and the ad seller. All of which benefit from network effects. In addition to that, a high 7 day active user count is a very attractive goal in itself as you can upsell them almost anything adjacent. Eg. Premium subscription, music service, movies, tv channels...