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by cat_theorist 971 days ago
They don’t publish that number, but you know it’s in the billions.

Here’s alphabet’s gross income (155b USD): https://www.wsj.com/market-data/quotes/GOOG/financials/annua...

And here’s an estimate of YT’s profit margin: https://mannhowie.com/youtube-valuation#youtube-profit-margi...

My point wasn’t about the specific number, it was a qualitative one: people in this thread claim that YT needs to kill Adblockers to pay for the service and survive. They don’t. They’re already making billions without crippling web browsers to disable Adblockers.

1 comments

I certainly don't know that their profit is in the billions. Neither do you, unless you're a high level Google executive.

The source you have for estimating the profit margin is just total guesswork. It's estimating the costs purely by taking the operating costs of other companies with different business as a percentage of their revenue, and then applying that same percentage to YouTube. That's an absurd methodology. You could just apply it to any business and show they're profitable.

(As an example, for years AWS was profitable and GCP wasn't. But applying the methodology from your link would have resulted in the belief that GCP was wildly profitable. And those business were far more similar to each other than Netflix and YouTube are!)

Also, you are making a point about a specific number: You are claiming the profit is greater than 0. It could be true! It could also not be true. We just don't know.