The Fatal Flaw With YouTube’s Business Model

As viewers, we all despise ads on YouTube. In many cases, it just seems like YouTube and creators are just being greedy stuffing in nonskippable ads every minute of the video. But, in reality, YouTube has lost money for the majority of its lifetime due to the massive costs of upkeeping YouTube. Every single minute, 500 hours of content is uploaded onto YouTube. And though the vast majority of this content won’t make YouTube any money, YouTube has to spend money on storing and streaming all of these videos. Similarly, every single day, viewers consume over 1 billion hours of content as of 2016. The bandwidth associated with streaming so much content to viewers for no direct cost is ludicrously high. This video takes a look at the craziest YouTube statistics to estimate how much it costs to run YouTube and why YouTube has struggled to pull in a profit for so long. Socials: Discord Community: Timestamps: 0:00 - YouTube’s Money Problem 0:34 - Youtube’s Business Model 2:00 - Storage Costs 6:47 - Bandwidth Costs 8:38 - Miscellaneous Costs 9:35 - YouTube’s Bottom Line Thumbnail Credit: Resources: