That is only 1% of all Google users maybe, but it is the seed we need.
https://www.theverge.com/2021/9/2/22654318/youtube-50-millio...
But create enough value, provide truly differentiated and unique experiences that ad-supported models can't, include privacy etc and there is a case to be made that over time a sizable enough segment will pay for that value that you can have a sustainable business.
That is certainly our bet at Neeva, and so far we have seen a lot of growth, interest and folks opting for the premium (paid version) over the basic. Even without a full push to encouraging the premium.
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.
Look at youtube. They show ads and there is a non-stop stream of complaints about how long/bad/annoying they are. They offer a paid subscription to remove all ads and people laugh at the audacity youtube has to ask for money.
Users DO NOT want to see/watch ads. Users DO NOT want to pay a subscription for "free" content.
Just look at the story of Vid.me, a youtube competitor start-up that promised ad-free and sub-free videos. It was a huge hit until it hit bankruptcy.