Subject: Re: Up about 50% this year

According to a research conducted by Entourage Marketing & Design in 2019 which used figures from Statista and Business Insider, it is estimated that Google spends an approximate $5 billion per year in running YouTube. That analysis was 4 years ago - over that time YouTube ad revenue has doubled, so as a proxy, and catering for views and quality of video also multiplicatively growing, I would say costs have also doubled from $5B (if Enterage is right) to $10B.

YouTube costs: $10B
YouTube premium: $10B
YouTube ad revenue: $30B

Its pretty naive to think they aren't getting any operating leverage from YouTube.

YouTube is one of the gold-star assets at Google - and is arguably more valuable than Netflix ($160B valuation).

https://www.benzinga.com/analy...

Users flocking to YouTube have put Hollywood and streaming giant Netflix, Inc. NFLX in a challenging position, as per Munster in an interview with CNBC. The total hours viewed on YouTube surpass those on Netflix by a factor of four, with 60 billion hours per month on YouTube compared to 15 billion hours on Netflix.

Munster noted, 'The reason is 20 and 30-somethings are embracing this creator economy, and this is really the crux of the challenge [facing Hollywood and Netflix]. The creator economy is user-generated content on steroids, and that's where and that's where all the viewing is going.'

tecmo
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