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> they probably spend far more on content production than any other platform. Back of the envelope: - YouTube ads revenue $9.2B / quarter [0] - Subsciption r

by jsnell 3y ago

> they probably spend far more on content production than any other platform. Back of the envelope: - YouTube ads revenue $9.2B / quarter [0] - Subsciption revenue $15B / year (this submission), let's guess 80% YT Premium -> $3B / quarter - YouTube revshare is 55% to creators =~ $6.5B / quarter or $26B/year paid to creators Netflix spends between $14B-$17B/year on content, depending on if you count it on an amortization or cash flow basis[1], and expect it to go down by 25% next year[2]. Disney spent $15B / year on non-sports content in 2023[2]. So yeah, not only is what you're saying true, but it's probably not even close. It's plausible that in 2024 YouTube's content spend will be more than Disney's and Netflix's combined. [0] https://abc.xyz/assets/95/eb/9cef90184e09bac553796896c633/2023q4-alphabet-earnings-release.pdf https://abc.xyz/assets/95/eb/9cef90184e09bac553796896c633/20... [1] https://s22.q4cdn.com/959853165/files/doc_financials/2023/q4/NEW-FINAL-Q4-23-Shareholder-Letter.pdf https://s22.q4cdn.com/959853165/files/doc_financials/2023/q4... [2] https://www.hollywoodreporter.com/business/business-news/disney-cuts-content-spending-2024-streaming-1235641858/ https://www.hollywoodreporter.com/business/business-news/dis...

nightski 3y ago
Funding original content is not the same as revenue share.
- jsnell 3y ago
  Sure. It's arguably even better for the creators, because not only are they getting paid more but they're keeping all the rights to the content. Most of that content would not be getting created if YouTube wasn't there to serve the videos, bring the audience, and make sure the creators are getting paid for it. (To the tune of tens of billions of dollars per year, not just small change.) Why is funding original content the critical part of the value proposition, while making sure that the people creating content are compensated for it is worthless?
dmonitor 3y ago
Can also add that Youtube is essentially paying out residuals on all their streaming content, something other platforms are absolutely terrified at the possibility of

by jsnell 3y ago

nightski 3y ago

Funding original content is not the same as revenue share.

jsnell 3y ago
Sure. It's arguably even better for the creators, because not only are they getting paid more but they're keeping all the rights to the content. Most of that content would not be getting created if YouTube wasn't there to serve the videos, bring the audience, and make sure the creators are getting paid for it. (To the tune of tens of billions of dollars per year, not just small change.) Why is funding original content the critical part of the value proposition, while making sure that the people creating content are compensated for it is worthless?

dmonitor 3y ago

Can also add that Youtube is essentially paying out residuals on all their streaming content, something other platforms are absolutely terrified at the possibility of