this post was submitted on 12 Dec 2023
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It is frightfully expensive to host video content. YouTube would cost Billions per year to run.
I always wonder about this. I pay only a few bucks per month for Nebula. I highly suspect Nebula is running at a loss.
Not necessarily. Nebula operates at a far, far smaller scope, with an emphasis on quality of videos over quantity, and every user is a paid user. If every user of YouTube was paying a couple bucks per month, they'd be making in the high tens of billions of dollars of revenue per year, several times more than they do with ads. Plus YouTube has a ridiculously huge amount of essentially worthless videos because literally anyone can upload a 10 hour video, so surely their hosting costs are higher per user than Nebula.
Oh right, I somehow forgot about that.
Subscriptions are really lucrative. Iirc most ads pay like 0.1-0.5 cents per view, so you'd need to watch an insane amount of videos to equal the cost of a $2 subscription. I could probably make a site that brings in money if I had 5 $2 subscribers and a half 100 medium quality vids. Start scaling that up and it can be really profitable while offering subscribers a fair shake.