3 ms·

Says the CEO of a competitor.

• Retric 18y ago
  Yep, "they’ve already reached the point at which no greater economies of scale remain, the costs of the business will continue to grow on a linear basis." This is wrong on several levels. YouTube helps Google reach even larger economies of scale. Granted YouTube is still going to end up as a net loss, but things like heath care become cheaper per person as the company grows. However, over the next 10 years hardware and bandwidth is going to get even cheaper. While moving to HD will probably eat most of that benefit, I still think YouTube will break in the not so distant future.
  • mattmaroon 18y ago
    Health care stops becoming cheaper per person at some number far below what Google has exclusive of YouTube. The same is true of most things.
    • Retric 18y ago
      Your forgetting about overhead. They spend K + Nx so cost per person is x + K/N which drops as N increases. Granted for companies the size of Google K is small relative to Nx but it's still a large number. PS: Management tends to work the other way, so cost per person is ~x + Log(N) but generally speaking it's a net win to increase the size of the company.