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This sounds like a pretty straightforward cause & effect here. Creators went for direct monetization outside of youtube instead of ads, and youtube responded by
by kllrnohj 6y ago
This sounds like a pretty straightforward cause & effect here. Creators went for direct monetization outside of youtube instead of ads, and youtube responded by keeping their net income the same by just showing ads anyway.
> But at the same time, there are people who have so heavily invested into the YouTube ecosystem with certain expectations for a very long time, and pretty much have their entire business on there, so they can't very easily take their business elsewhere if they're unhappy with the change.
A key part of running a business is risk management & mitigation. YouTube has very obviously been an ad-supported video platform for at least a decade. Hoping nothing changes about your little ad-free corner of that platform is not a sound business plan.
It's shitty that Google didn't give a heads up, but anyone whose business is riding on this should definitely have been expecting something like this and had a backup plan. Literally free content hosting is obviously not a thing that will exist for very long. Enjoy it while it lasts, but you know also have a Vimeo account ready to go as well or something like that.
- leafmeal 6y agoI agree with most of what you're saying, but I worry that Youtube's effective monopoly means that there just aren't other hosting platforms with the same kind of user base and discoverability. Perhaps their current pricing model is fair, I have no idea. But being the de facto video hosting site gives them tons of power. They have the ability to extract extra value out of their users---much more than a non-monopolized market would allow.
- kllrnohj 6y agoI'd agree if and only if this was some drastic shift in policy, but it really isn't. The headline here is basically ad-supported platform shows ads. Ads have been super common on YouTube for years and years, so this isn't really a big change in overall expectations & experience. It's not an ad-free platform goes ad-supported situation where it was subsidized to kill off others before showing ads. More a small loophole was closed, and only if you were large enough to even have the loophole available to you in the first place.
- leafmeal 6y agoI think what we're saying is compatible. Youtube isn't really doing anything new, just putting out more ads. They're able get away with it because they have a monopoly.
- bilbo0s 6y agoIn my opinion, they don't really have a monopoly. They have plenty of competitors. In fact, the largest user generated video servers are under facebook control. They didn't do it because they had a monopoly, they don't have a monopoly. It was more base than that. They did it because they wanted more money. Which is their right. I'm not complaining, but everyone's putting forth a great deal of high tone reasoning fro something that really is base venality at its root. They want more money. They believe they can get it even though they are not a monopoly. Even though Facebook is bigger. And even though their users will get mad.
- leafmeal 6y agoYou're totally right, they want more money. I agree they don't have a perfect monopoly either. There are lots of other options. The reality is, most of their customers aren't going anywhere. Consider all the times you use Youtube. Trying to find a music video, watching sports highlights, videos from your favourite creators. Can you switch to DailyMotion for all of that now? Are all of your creators posting their videos on Facebook? Even if they are, are the videos as easy to find and discover as they are on Youtube? For content creators, is there anywhere else they can share and expect to find the same kind of audience? Not really. This is what I'm talking about when I say monopoly. It's true, there's other options. A creator can post their videos on Vimeo and host their own website to monetize, just like someone could have taken a horse and buggy instead of the new railroad. No one is forced to go by train, but doing it the old way is inefficient and expensive. n both cases they won't get the same bang for their buck.
- ehsankia 6y agoYou yourself admit that Youtube is a platform that provides you with great user base and discoverability. That's also the exact reason what every other platform uses to charge 30% (Steam, Apple Store, etc). So why is it expected here for Youtube to give away all that for free, and allow you to completely turn off all the ads making them zero dollar, while you are having your content hosted for free and making money externally?
- leafmeal 6y agoYou're right, they shouldn't give all of that away for free. They deserve to make money for their service. I don't really have an opinion on the business model, or whether it's right or wrong to force ads on all videos. I just become worried when they use their monopoly to extract as much value as possible, far beyond what they need to sustain their profits. I think monopolies are bad in principle, and Youtube is another example, just like Microsoft was, cable companies are, telecom was, railroads were, etc.
- ehsankia 6y ago> I just become worried when they use their monopoly to extract as much value as possible, far beyond what they need to sustain their profits But I'm not sure that's clear. There's been a distinct increase in the number of in-video ads (Raycon, Skillshare, ExpressVPN, Squarespace, Curiosity Stream, and so on), which probably corresponds to a distinct decrease in Youtube enabled ads. So with that logic, Youtube is probably making less money from top creators, who have been skipping the middleman entirely. This seems more like a step to retaining existing profits instead of increasing them.
- bscphil 6y ago> Creators went for direct monetization outside of youtube instead of ads, and youtube responded by keeping their net income the same by just showing ads anyway. It's more complicated than that. Small time creators or others ineligible for the Youtube "partner program" have no choice but to monetize outside of Youtube. With this change, the only way you as a creator can choose whether ads appear on your video is to make partner. The scummy thing here is that Youtube has made it harder and harder for creators to become eligible to monetize their channels, and now they're swooping in to take 100% of the ad revenue on those small-time channels.
- kllrnohj 6y agoBeing eligible to monetize doesn't look that intimidating? https://support.google.com/youtube/answer/72851?hl=en https://support.google.com/youtube/answer/72851?hl=en Not sure how many small creators both can't manage that but can manage external monetization?
- hobs 6y ago1000 subscribers? You can sign up and make more money from 3 patreons than 1000 yt subscribers, what are you on about?
- dmix 6y agoEven YouTube made $3 billion in non-advertising revenue last year which includes subscriptions. The ad business brought in $15 billion revenue.
- Aerroon 6y agoThat depends on the amount of content you post. 1000 people watching a reasonable length video might only be $1-2 per video, but 10-15 videos a month would be $10-30. That can be more than 3 patrons.
- bsanr2 6y agoMost people I know using Patreon post weekly, with maybe 2-3 posts a week. That includes 2nd-tier content like WIP and polls. Patreon requires a substantially smaller commitment, but it's more difficult to find patrons than viewers.
- viraptor 6y agoCreators not only moved their ads out, many have been using and advertising other platforms for a while now. Dropout.tv, floatplane, nebula, patreon, etc. have been getting ad-free, paid users for lower price than the current yt.
- forest_dweller 6y ago"Creators" went for direct monetisation because de-monetisation can happen on youtube for almost any arbitrary reason and there is almost no way to contact a human (as far as I am aware) to remedy such a situation.
- JakeTheAndroid 6y agoYeah, and I think this drives the point home even further. You really want a risk mitigation strategy for YouTube's hostile actions against creators. It's been a slow but steady creep. So, if your business is built off the back of something like Facebook, or YouTube, or Instagram, you probably want a backup plan. I've seen a few YouTubers have a centralized site for signups and support where they host all their content. While the YT revenue is important, they at least have a way to engage their consumers should something terrible happen. This is BCP in a nutshell.
- theturtletalks 6y agoCan creators self-host videos on their personal website and push that video to Youtube for their subscribers? That way, they can direct users who don't want ads to their website. Then they are not completely dependent on YT, FB, etc.
- forest_dweller 6y agoIf you even have a few thousand people regularly watching you (whcih is common these days). The bandwidth costs start to add up.
- fxtentacle 6y agoNot really. Good dedicated servers come with multiple TB free = 1000x 1 GB stream. And usually it's only pennies afterwards.
- forest_dweller 6y ago
- deleted 6y ago[deleted]