YT Premium is expensive. Much more expensive than users expect.
Most people underestimate the value of their attention. Youtube earned 7 billion USD in ad revenue last quarter.
The value of our attention is a shock to most people. I suspect that YouTube may actually be losing money (as compared to ad revenue), even at the $12 / month--a price many users find outrageous.
I am calling this the 'ad gap', which is difference between what an advertiser is willing to pay, and what the user is willing to pay to avoid the ad.
One way to look at it is that users are irrational. But it can also be seen as a testament to the effectiveness of advertising.
Exactly. YouTube Premium is loaded. Its pricing is based around selling YouTube Music and YouTube Originals. I don't want either. I'd happily pay 5$/month for a YouTube Premium experience.
Most people underestimate the value of their attention. Youtube earned 7 billion USD in ad revenue last quarter.
The value of our attention is a shock to most people. I suspect that YouTube may actually be losing money (as compared to ad revenue), even at the $12 / month--a price many users find outrageous.
I am calling this the 'ad gap', which is difference between what an advertiser is willing to pay, and what the user is willing to pay to avoid the ad.
One way to look at it is that users are irrational. But it can also be seen as a testament to the effectiveness of advertising.