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shaboinkinyesterday at 7:21 PM2 repliesview on HN

My opinion is the original 99 cent app, then followed free apps and services caused a public devaluation of software costs. Use Youtube as an example. It tickles me hearing people complain about the cost of a YouTube subscription. In my head, I’m well aware of the colossal amount of costs that go into the hardware and software that allows for such a service to exist in the first place. Yet it’s a bloody outrage to spend money on it to remove ads. Maybe someone could tell me what actually is a fair value of tapping into literally every single video uploaded in YouTube’s existence on demand? $16 a month seems reasonable to me.


Replies

hansvmyesterday at 9:23 PM

Yes and no. Storage should cost in the ballpark of $200M/yr or less. Transcoding, networking, and delivery should be similar. Let's round up to $10B/yr just for fun.

YT makes $40B/yr (revenue IIRC) across its 3B customers, or $1.11/mo. $16/mo seems high by comparison. It's very high with reasonable costs of $0.28/mo. Nearly every other industry on the planet is jealous of margins like that.

A normal counter-argument here is that they should be allowed to reap those profits till competition forces them to do otherwise. That's a little at odds with our normal view toward monopolies, especially when the monopoly engages in anti-competitive acts to preserve that edge, but whatever; now you're at least having a real debate about real facts and things you care about.

Another is that YT's expenses in practice are way higher than that because they need to hire a bunch of ML people or whatever to extract even more ad money out of you, and that's a point I disagree with pretty firmly. I'm not sure why my subscription needs to subsidize a company's other predatory tendencies.

nemomarxyesterday at 9:03 PM

I liked it better at 10 a month tbh. If they keep increasing the price like Amazon they need to offer more features to compensate.