this post was submitted on 28 Apr 2024
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I'm a software engineer at AWS and work on video content delivery for services like Netflix. The idea that one single ad could cover the cost of delivering a video that's been replicated in multiple servers, multiple regions, multiple countries throughout the world is pretty hilarious. No matter how much money you think YouTube is making I can almost guarantee it's not enough. There is a reason there is no significant competition in this space, it makes no money.
What’s less sustainable is centralized web. You must know that since you work for Amazon, right?
When PopcornTime was still a thing you could watch adfree any movie you’d like even in 4K because resources were shared through peer to peer.
Now, YouTube gets up to 12$ RPM, content creators get maybe 40% of that. With 2 prerolls and 2 midrolls + banners they get plenty enough money to make things work. Google has the most aggressive VASTs of the market. They are everywhere, called multiple times per pages.
Spare us your tears.
Besides, no significant competition? Is that a joke?
If you think it's sustainable you can create a new service yourself, no one is stopping you. I've done cost estimations for projects with 1M+ customers and the margins are so tight we've killed at least a dozen services despite pouring months or years of effort into their designs and prototypes. It's easy for you to complain about freebies from your couch but the reality is that if someone could make a better service than YouTube, they already would have. "Spare is your tears" lol.
Question that pertains to general hosting at those scales. In your opinion what costs more, distributing a piece of content that will get 1M views, or 1000 pieces of content that will get 1000 each? I know the math wont add up, but I dont know where the cost bottleneck is. Is hosting something even though it isnt used or that viral spike in views that kills attempts to make a smaller service like this?