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> Youtube Premium is only ~$10/month, does Google really make that much more with ads? Yes! Already their average per-user revenue was 21 USD per user per mont
by est31 4y ago
> Youtube Premium is only ~$10/month, does Google really make that much more with ads?
Yes! Already their average per-user revenue was 21 USD per user per month in 2018 (couldn't find newer data) [0]. Furthermore, the first people to sign up would be the richest folks, those who are the most interesting to advertisers. Meaning: they are worth way more than 21 USD per month to Google.
To compensate, the price would have to be even higher. If only 5% of Google's userbase signed up, and those 5% are, on average, worth to Google 5 times as people from the general population, then you'd have to pay 100 USD per month for getting rid of ads across all Google products. That number would also have to grow at least as quickly as the ad revenue for it to make sense for Google to do it.
[0]: https://mondaynote.com/the-arpus-of-the-big-four-dwarf-everybody-else-e5b02a579ed3 https://mondaynote.com/the-arpus-of-the-big-four-dwarf-every...