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thblackdeth t1_isalcvy wrote

Reply to comment by almightygarlicdoggo in [OC] Google IPO vs Now - breaking down revenue and profit sources by giteam

Helps explain why in the last two years it feels like YouTube is doing 4-5x more adds

I suspect part of the difference is also paying content creators enough. That cuts into Google's share, if they don't give creators enough money, the content will go to other platforms

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almightygarlicdoggo t1_isam15z wrote

Yes I think that makes sense, nevertheless it's still odd given how big YouTube is. This might be why it has so few competitors, they would have to operate at a very big loss for many years, I don't think many companies have that much money to throw away

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thblackdeth t1_isamc9d wrote

Yeah good point, it has to be insanely expensive to have enough storage space and bandwidth for all the videos. If you can't pull in enough of a crowd quickly, it would be massive losses.

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almightygarlicdoggo t1_isanz2s wrote

Interestingly, as you previously commented, you might be right why they are pulling so may ads nowadays, their revenue in 2016 was "only" 6.7$bn. And with how expensive you said it is to operate, I don't think they were making that much profit back then, even though it was still a massive corporation.

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