YouTube is an extremely efficient platform and business. Google makes an obscene amount of money off YouTube sure, but there are very few companies who could even compete with google based on the cost to produce the product of YouTube. YouTube’s real enigneering is done in the backend where compression and encoding is ensuring our grandparents Windows 98 tower can still load a 1080p Martha Stewart Thanksgiving special.
80% of Googles revenue is from advertising. 58% search 12% network ads and 12% YouTube ads. Hardware and cloud round out the rest of Alphabets top 5 revenue generators.
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