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Disclaimer: I worked at Google and occasionally did things for YT, but it was 2015 and before. I did look at their P&L, somewhat.

egress costs were enormous and YT was not profitable. I don't know if it is now, but I wouldn't be surprised to find it is. They sure have enough ads.

As several people say below, caching content around the world is key, so that not all requests are serviced in NoCal.




Bingo, YT has always been a loss leader for Google dominance. Only recently have they squeezed the ads knob to maybe generate a profit but I’d bet it’s nothing like the high margin AdWords cash cow.


It's rather interesting that there is the possibility that you can't actually run a good, for profit streaming service, based on ads. The current iteration of the YouTube recommendation seems to suggest that you have to at least remove the "good" part of the equation. You're also correct in that they squeezed the ad knob, but I fear that they squeezed it to much. YouTube is unusable without ad blocking or YouTube Premium.

The cost of YouTube Music is $11 and YouTube Premium, which include Music is $14. To me that indicates that you can run YouTube for a given user for around $3 - $5 per month. Trying to watch YouTube with ads, the shear amount of ads and the length, could be a sign that ads on YouTube is almost worthless, at least they seem to struggle to get $5 per user per month.

YouTube isn't going to die at the hands of competitors anytime soon though, because the cost will deter anyone interested.


YouTube Music is just a reskinned YouTube client using the same catalog, playlists, history, likes, etc as YouTube itself. I wouldn't put much into costs based on that price.


There's nothing in the world like the AdWords cash cow. They're a one-trick pony, but it's a really good trick.

Content ads: not nearly as much.


Visa and Verisign are comparable cash cows:

https://www.macrotrends.net/stocks/charts/V/visa/profit-marg...

https://www.macrotrends.net/stocks/charts/VRSN/verisign/prof...

Epic electronic health records software is not a publicly listed company, but I would guess they have massive profit margins too.


As long as we’re talking about epic: is it an exclusively self hosted product? I don’t understand how it’s so susceptible to ransomeware compared to nearly every other cloud platform. You never hear about someone’s salesforce being ransomwared or their servicenow being held hostage, but it feels like we can’t go a month without another hospital going offline.


As I understand, Epic be hosted on-prem or in the cloud. Being in the cloud doesn't eliminate downtime risk from ransomware, though. Even if you treat each PC like a dumb terminal, you're still going to have downtime to replace or repair them when they no longer work.

> You never hear about someone’s salesforce being ransomwared or their servicenow being held hostage

You may hear about business organizations being unable to do work due to ransomware. Likely nobody mentions their inability to access salesforce specifically, because 1. the data in there usually isn't controlled and 2. likely nobody is going to die if they can't log into salesforce.


It's so wild to see people so confidently being wrong in a comment. YouTube has seen profit since 2013, with margins growing each year.


Do you have any source on that? Google has never released separate revenue/profit details for youtube.


it's so wild to see people so confidently wrong. I was there. Were you?


I was there as well, and Youtube was wildly profitable.

See how easy it is to make random statements on the internet.


[flagged]


The most frustrating thing about this wall of text is that the time it would take to verify all the parts is exponentially more than the time it took to generate.


Unrelated to this thread and completely OT - I feel like you've just touched a live wire that I haven't seen a lot of conversation yet wrt. LLMs.

We've seen plenty about media literacy / verifying news over the years of course, but the time and surface area considerations will change exponentially if people can start generating fake news with an AI (especially audio and video).

And I think it's too naive to go straight from there to the Dead Internet Theory, because that's like switching from "believing everything you read on the Internet" to "disbelieving everything you read on the Internet" (which is necessarily wrong with the opposite percentage margin).

For this thread, I'm inclined to believe the original comment(er). I'm not going to look it up, look up the username, ask an AI, or really care all that much about the debate, because I'm not directly interested in the outcome.

I _am_ interested that, in my own mind, the original comment lost an enormous amount of credibility when the author then reached for ChatGPT to defend the claim. So the only thing I can do without sinking a large amount of time into looking for sources is to leave this thread thinking "I don't know, maybe I'll actually look it up one day, and evaluate it properly when it becomes relevant to me (probably never)". And maybe that's a better outcome than my initial "yeah seems like a legit HN comment" anyway.

EDIT: There's a second level issue too where the people using AI to generate "facts" won't themselves know whether they're generating true or false information - presumably(?) not the case in this thread.


so frustrating when you don't have any facts of your own, too.

Here's an answer to you & all the downvoters: just download an annual report or a 10-K for Google, for the years in question.


Since you are so certain that the data is available there, please cite the net income for YouTube that is supposedly in it.


since someone else has made a statement easily verifiable, please ask that person to support it.


Telling me to go sift through several 50,000 word documents kind of proves my point.

Realize, I’m not anyone up the chain claiming any knowledge about YouTube’s specific profitability in any given year. I’m just commenting about how frustrating the internet is becoming. HN can be cool because you’ll be in threads like this and someone who worked on some original piece of YouTube compression algo might pop in to offer insight.

On the other hand, multiple paragraphs of ChatGPT regurgitation are next to useless. If you really want to share that kind of thing, maybe link to the publicly available chat instead of quoting, so people can read it if they want to or ignore it at their leisure.


It proves nothing. AI is sometimes wrong. So is everyone. Most of the time it's regurgitating publicly-available data.

So rather than assserting it's all wrong, why don't you find one thing in it that is?


I don't know why you're getting downvoted. Efficiency projects like the transcoding ASIC are a big part of pushing YouTube to profitability, as well as the alternate revenue streams and heavy increases in monetization. Video serving is extremely expensive and difficult compared to everything else Google does.

Ruth Porat has been on record many times indicating that YouTube wasn't profitable in the 2010's. I think her public statements have only indicated that YouTube was free cash flow positive as of the 2020's, but I haven't found exactly where that happened - Google has experimented with a lot of different kinds of breakdowns of its finances. I assume that hiding the economics of YouTube is part of this (as well as protection against a zealous DOJ saying that Google's businesses are separable).


> I don't know why you're getting downvoted.

Because I'm not here to read a wall of text generated by ChatGPT.


I normally hate the ChatGPT spam on this forum, but this was not a bad use for it (assuming it wasn't lying).


> assuming it wasn't lying

that's the key issue with this kind of ChatGPT writing. Code you can relatively easily check for correctness - just run it. For analysis on this level, it really had to be based on facts and reality, not generated by a bullshit generator to be of actual use.


I actually went back to the source it pointed out - SEC filings and the call transcripts are all public. It isn't citing the most recent statements on YouTube by far, but the citation of 2017 was at least correct.

In this case, digging through all the material to find the factual basis is the hard part, and corroborating it is not (for those who care).


Why are you here, then? Download the financial statements. It's not like they're behind a paywall.


> Why are you here, then?

Different user, but I'm here to read what people are writing. IMO, pasting GPT content is about on par with replying to something with a LMGTFY link.


LMGTFY is equivalent to "you could look it up, so go do it." I'm not your research service.


No. 2013? See GP, see Google financial statements, etc. I do think it started turning a profit over the last 3 years, but can't confirm that.


Where is this shown in the 10-K or 10-Q filings?

http://abc.xyz/investor


So this is the reason YouTube started going downhill around 2015, Albert stopped working on it!

(It’s a joke, I know YouTube started going downhill the moment they’ve decided to squeeze every penny out of it)

E: do you happen to know by any chance why algorithm for recommendation become so shit?


I have an ad blocker, so they decided to "punish" me by not showing me recommended videos anymore. It was a blessing!


also with adblocker but i do get recommendations, though the quality/relatedness has gone downhill.

i suspect privacy legislation and this cohort thing to be at the bottom of this


Never said I "worked on it."




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