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Ads benefit the customer by reducing the price of a 55" 4K TV down to 300 bucks, which is absolutely below the true cost of the device (parts, R&D, support etc)
by 0xy 5y ago
Ads benefit the customer by reducing the price of a 55" 4K TV down to 300 bucks, which is absolutely below the true cost of the device (parts, R&D, support etc).
They are selling you a below-cost TV and making it up in ads, same as Microsoft selling you a below-cost Xbox and making it up in accessory sales.
I don't think it's correct to say there's not benefit. The benefit of YouTube ads is that you have unlimited 4K content available for free (below cost of bandwidth).
While you may say you'll pay 600 bucks for that 55" TV with no ads, most consumers will disagree with you and they show it through behavior.
- Anther 5y agoI do wonder if they were to offer exactly that - a version with and another without ads, what would happen. This is not without precedent after all. I paid more for my Kindle so as not to have to be advertised to when I want to read.
- foobarian 5y agoThere are plenty of dumb TVs out there, usually intended for commercial signage, conference rooms, etc. But they are more expensive.
- 0xy 5y agoFree users of YouTube outnumber YouTube Premium subscribers by an overwhelming number. If no ads isn't worth $10/month, you can bet no ads isn't worth several hundred dollars on each TV purchase. If most YouTube users were Premium subscribers, it would more than double revenue. Premium subscribers are worth more to Google than free ones are in ads revenue, by a lot. Monetized channels receive orders of magnitude more revenue per view from Premium subscribers than free ones.
- toastal 5y agoYup, look at how popular the Oculus Quest is at $300 and how Facebook flashes ads in them.