YouTube premium perfectly showcases why ads dominate the internet, because even when there is a paid option for a service much cheaper than any alternative, people do not want to pay (And I am not talking about too broke to pay cases). Serving an infinite video catalog is very expensive in terms of all resources (And yes Netflix is not comparable, unlike YouTube, Netflix can highly leverage cache boxes at ISPs). Vime…
No, it perfectly showcases that people do not want to pay 1000% more money for the privilege of paying a monthly subscription. Youtube Premium costs $12/month [1]. Ads average something like $2 per 1000 views to the creators (in some of the most common categories) [2]. Youtube takes a ~45% cut, so Youtube makes ~$4 per 1000 views from ads. So, to reach $12/month, you would need to average 3000 views per month. At a a…
But I also feel like you have an incorrect unstated assumption: People are not perfectly rational. The difference between paying $0 and paying $1 is ENORMOUSLY bigger than the difference between paying $1 and $12.
C.f. people will spend hours finding the perfect app that is also free, instead of just paying $2 for the perfect app they found after 2min. It doesn't make any sense.