Hacker News new | ask | show | jobs
by Y_Y 596 days ago
And what would be the reason for this subsidy? Do they think YouTube is going to keep growing and it's worth waiting for them to become somehow more popular? Would it be catastrophic for Alphabet if other large players entered YouTube's market?

And why would losing a subsidy mean increasing prices? As far as I can tell consumers think YouTube's offerings are overpriced as is and they could probably increase profit by lowering them, especially if it's not their parent's add subsidiary they'd be cannibalising.

1 comments

Because google currently gets valuable ads data from youtube. So even if the product itself runs at a loss the net benefit is positive.

If its spun off then the platform has to stand on its own and it would need to make more money.

> it would need to make more money

Really? Why?

Can it? If so why hasn't it done that already?

because they are running it more lean to maximize the data gathering potential. which is what is valuable to the parent company.