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> Youtube has to share it's revenue with content creators, unlike Netflix. Depends on the contract. That is why you see more and more content produced by Netfl
by dig1 6y ago
> Youtube has to share it's revenue with content creators, unlike Netflix.
Depends on the contract. That is why you see more and more content produced by Netflix, where they control the complete chain. However, producing Netflix content has an initial cost, but producing YouTube videos does not (for Google) and the videos are monetized only if the number of viewers are increased. Which also increases ad earning to Google.
Google might be in a much better position here regarding streaming quality (or traffic reduction control). You get YouTube videos for free and even if you request HD content, you don't have to get it every time; no one can complain because it is free. However, for Netflix, you pay for HD quality and you expect that almost always.
- sosborn 6y agoGoogle's production cost is uploading bandwidth and storage. If you look at a single popular video it's easy to think, "Oh, that's nothing." But consider the massive amount of video uploaded that only gets 1 - 10 views over its lifetime.
- ls612 6y agoSome back of the envelope math suggests that a 30 minute video needs about 10 views a month to pay for its storage. So clearly there’s some amount of the popular stuff subsidizing the unpopular stuff but the break even point is much further down the long tail than people realize.