YouTube is increasing Premium prices in multiple countries, right after an ad-blocker crackdown | You either pay rightfully for the video content you consume, or you live with the ads.::Google is increasing the prices of YouTube Premium and YouTube Music Premium subscriptions in some regions, right after blocking ad-blockers.
Making money by charging for completely optional services is not only not wrong, but the very reason why we have most of the good stuff that we have.
Awesome! Submit your resume or send it as a proposal. If they didn’t think of this first and discarded it because of reasons that you haven’t considered, this might be an opportunity to benefit everyone.
And who said it is wrong ? I only said that they want to make more money, not that they cannot make money.
Not interested, I leave it to you ;-)
The reason is that this way they would make less money while keeping the service in the black, people would realize that, after all, Youtube is not that important part of their routine, and the total number of users would be lower (by a long shot probably) so even less data to harvest and sell and less return in Ads. After all who would watch 2 minutes of ads in a 2.30 minutes long video ?
Imagine Google doing it and then saying “we restructured out offer and this yeas we are 30% below the last year analysts’ forecasts and we think that we will cut the earning by half while keeping the operational costs below the X % of the total profit”. The next day the shares would be trash and all the management would be fired.
The reality is that once you are quoted in Wall Street (but it is true in every other place) you always need to grow. The problem is that you need to grow faster than your userbase could grow so no way to add X million new users (eyeball to watch your ads) every year: at some point you would run out of people (or of people who would accept, which is the same)
So the only thing you can do is monetize some more of what you already have. The only reason Youtube want to get rid of the Adblockers is that this way they can say to the advertisers “we increased the number of viewers of X % so you should pay us Y % more” so they can reach what the Wall Street analysts’s forecasts were and the stock price increase. Nothing else, no server or bandwidth problems. Only stock prices.
Stock prices are one element of what makes business possible. Youtube would not even exist without this mechanic.
It’s like complaining that people have sex.
It’s a core facet of running a business. It’s a requirement and an expectation. This is part of “keeping the lights on”.
If you think so, you should explain where exactly the 1.624 trillions $ value of Google is, given that its net assets are about 267 billions $ and they had about 118 billions $ in cash (or cash equivalent)
Stocks are only a loan that a invenstor make to the company with the understanding that the company will repay it with a earning for the investor, nothing else. (well, it is not that simple but you get the point). Which is the reason a company always need to grow, because I buy your stocks today at 100 and I expect to sell them tomorrow at 101. Someone else buy your stocks tomorrow at 101 and expect to sell them next week at 103. That is indipendent from the fact that you have covered your operating costs in this week.
Youtube could exist even without this mechanic. True, it would not be as big as now or had the supposed value it has now.
It is the easy way to run a businness. A loan without the need to repay it.
The only element that “keep the light on” is that you have less cost than profit.