I do wonder if it could be argued (maybe even in the current monopoly case against google) whether youtube engaged in predatory or below-cost pricing in order to drive out all of its competitors, establish a monopoly, and now use that monopoly in order to "raise prices" i.e. increase the amount of ads on its service in order to maximize its profit margins.
Although this does seem to be the business plan of basically every startup out there. Get VC funding, run at a loss and burn through money but gain a monopoly market share, and once you've done that you can raise your prices and have a profit margin that far exceeds what should be normal.
Slightly off topic, but the business plan of startups seems to be "get VC funding, and exit". What you wrote may be the business plan of VCs.
I don't understand the valuation of many startups these days (even in the hypothetical case where they capture 100% of their potential market one day).
The crypto dynamics have shifted the expectations so far to cheap, quick moment they most VCs, especially the a16z kind are more about “Can I juice this business and it’s metrics enough to sell it to someone to hold the bag”.
Ironically I think the large numbers involved are basically part of that PR game - they act as proof that the business is worth it and attract attention and bagholder interest.
The crypto economy worked like that too - the NFT wash trading, the signal metrics used to sell the idea that there is value where there is none.
Probably something something wework too.
This strategy existed long before "crypto"
Google, YouTube's owner, isn't a VC. YouTube was its best when it was burning VCs' cash.
But this seems to be the play book for all VC funded web apps. Facebook and MySpace did the same. In fact, you can argue that moving towards profitability too soon and too fast is what killed MySpace. But that argument only works if you are willing to see the growth phase as something other than predatory pricing.
I think your comment is a sobering input to the whole startup discussion.
"Venture capital itself is not a hack. The hack is when unprofitable companies use VC funding to ignore the dynamics of the market economy. We don’t want some central planner to decide which businesses should remain operational and which should close down. But this is exactly what happens when venture capital firms become involved. The injection of VC money means that companies don’t need to compete with each other in the traditional manner, or worry about the normal laws of supply and demand. They can do what would normally be crazy things—give away their products, pay extravagant salaries, sustain enormous financial losses, provide a service that actually harms people—because of that external funding source. It’s basically central planning by elite investors, something that would be called communism if the government did it."
It feels about right... it's almost the same thing. Except there are multiple competing "central authorities" with money, so the ones who fuck up do get burned a lot harder than they would if they were part of the very big government.
This doesn't mean there's no place for VC funding, there's lots of legitimate uses for it (i.e. handling mismatched cost/revenue flows from expansion where there are a lot of upfront costs and cash flows come over the following years). Just that it's usually more profitable to be a monopolist/oligopolist and so that has been where the money has been flowing, at great detriment to society.
Left unchanged, the market can have new entrants that undercut the major player. In this case, any new video playform that has fewer ads could steal market share from youtube. Rumble has entered the market to do just that.
Network effects do make this challenging, but that is for the market to decide. The more creators that dual upload and then see number shifts over to a YouTube competitor, the better,as it will force YouTube back into competition.
The market will solve this.
Just look at Twitter, it completely spit in everyone's faces and even still people cannot get out of its grips on them.
The only platforms that have even remotely survived are platforms that also own an ad network, or some other secondary source of income (like Kick and their Crypto gambling site or Twitch with their ad stock) as a way to shovel users into that fire. The market cannot solve this and has no incentive to do so. Again, it's a complete fantasy that has not once proven true.
People can get out of them. People refuse to get out of them. Likely this is because YouTube and Twitter are still the most efficient platforms regardless of their regressions.
I used to have FB. Now I don't. I used to have Twitter. Now I don't. I used to have Android. Now I have Grapheneos. I used to use gmail. Now I use Fastmail, Mailcow, and shared hosting. I used to have Instagram. Now I don't.
You can decide to not be a user of a service. You can build your own! Or more easily, you can migrate to a competitor.
All of this clamoring for more regulation is nonsense. We have a market that can solve these problems. But markets work by votes. The path is harder if you take the road less traveled.
It's not fantasy. This is how markets work; how economies work.
Let's look at something like FB. At one point they were absolutely the social company. But other competitors have entered the market. In some instances, new markets were created, like Tiktok. Those new products took users away from FB. In some instances, the users will never return. This has happened precisely because someone somewhere decided to make something and challenge the existing market.
> I didn't even mention regulation
My bad. I was getting this thread confused with the one about AI regulation.
People refuse to get out of them is the market. That is the point of their growth and dominance model.
People refuse to get out of them because they are still the most efficient providers. Regardless of the user experience degradation, YouTube still offers the best product. For example, Rumble doesnt let me start looking for ve events from the beginning. YouTube does. Better experience.
My hypothesis: if YouTube only worked on Web Integrity browsers and forced a four hour ad before content was played, people woulf move elsewhere. They havent yet because YT is still the best.
AND this is tech. The place that "network effects" was coined.
Private capitalists controlling the economy is practically the definition of capitalism. And it's bad for society indeed.
That is not the definition of capitalism. The definition of capitalism is a system in which owners of capital control their capital in accord with their interests, which translates into competition because everyone else is also controlling their own capital and labor for their own interests. The natural outcome of this system is monopoly, which does closely resemble all the harms and dead weight loss of communism but, unlike under communism, the government is supposed to be there to stop total control, bust up the monopolies, and restore competition. It did a passable job of this until the Rehnquist supreme court in the 70s and it's time to start back in that pre-rehnquist direction. It's never time for communism.
Plus the early days of google (before youtube acquisition), i dont think their video search was as good as the text search anyway (but i might be misremembering of course...).
The video results for most of my queries are like 90% SEO garbage without a video even being present on the linked page.
It's abject failure.
It's an exemplar of it and it will be featured in textbooks centuries in the future, in the same way we recall the railroad tycoons from two centuries ago (Leland Stanford being a linking thread of history), or the East India trade monopolists two centuries before that.
It _should_ be illegal, but since it's the current status quo, it won't change anytime soon.
I do feel bad for the creators, but I would rather donate to their Patreons than buy YT premium.
I ended up subscribing to both Nebula and Dropout.tv, especially after noticing that a good portion of my favourite YT channels are in fact on Nebula. Sadly, this is primarly larger ones, and I do feel bad about smaller creators being kinda stuck on YT… especially when it's the odd one-time well-made video that really doesn't warrant e.g. Patreon.
But yeah, the real moral quandry is with the creators. They're more or less under the same monopoly pressure; in most cases you just can't ignore the YT audience :(
Where do creators go if not YouTube!? Ideally they could self host videos which could be expensive AND not bring any revenue, neither do they are they discoverable - this is where the internet is broken these days.
And maybe this is where micro transactions would have a proper use case, i.e. if you had a browser extension where you add $5 and then you can dish out 1ct or 10ct for some content...
I have no idea how well it worked out - I am still contented with the ad-filled YouTube
Ps. Now I am curious why you are getting downvoted. Are people here in favor of this type of thing? I wouldn't be surprised either at this point
It won't happen of course.
I recently had ads show up before videos on YouTube (audio only, so uBlock Origin was blocking part of it), and the only thing I felt was disgust and a mental note never to buy insurance from InShared (a Dutch insurance company) simply for repeating the same stupid jingle for each video.
Youtube is great because of the wide availability of videos, recommendations and (maybe not great because of this) the comments.
I know the comments are not that well liked, but it means the videos are not in a vacuum. They are in a social context. And comments are pretty good, maybe because negative ones are heavily suppressed, that's at least what it looks like.
Nebula feels empty because of those missing parts. It doesn't draw you in to new channels. I don't like half the recommendations youtube gives, but some of them I do.
I think in an ideal world the recommendation engine and video host would be separated. You could be recommended videos on all platforms (including single-creator websites).
If you want "free-market" you should deal with its basic premise that consumer pays as little as they can and seller tries to milk the consumer as much as they can. That's quite literally how it's supposed to work.
I'm very much in favor of bringing some morality to the economic system, but it shouldn't be one sided.
Also: part of the problem is the quality of the ads. Could you actually get "better quality" ads for a competitor video platform? Do such ads even exist in sufficient number at this point? (I vaguely remember a significant portion of larger companies reducing their internet ad budgets because they simply weren't seeing good returns…)
It's the largest video platform in China[0]. However, it keeps losing money since forever, including in last year, and is expected to keep losing more in 2023.
[0]: Youtube is blocked in China and you need a VPN to access it there.
There's also the ridiculous fact it is literally impossible to pay to remove the ads without also getting the horrible Youtube Music service.
Sounds anticompetitive as hell, and a government that actually cares about functioning markets should eviscerate them for it.
Give a dollar(unprofitable and unsustainable service) for a pennies by burning the money of the investors to capture a market then switch to high profit margin business practices and milk out the captured market thereafter.
Sure, it can be framed as spend money when developing a product then make profit of it when released but the winners are determined by keeping alive the developed product longer than everyone else ane when everyone else is gone, then monetise.
People who spent billions of dollars to run YouTube at loss for years were not philanthropists, they rightfully expect to make that money back and make much more on top of it.
Because I say so with my AdBlock. This is the reason why small guy should have power.
Creators have the final decision on the ads shown. I have a YouTube channel, and I always disable monetization on all my videos, so no ads are ever shown on my channel.
If you see an ad, it's because the creator decided to include one. YouTube is simply the platform that enables this choice.
But after the channel satisfy such requirements, like 1000 subscribers, the creator gets control of the monetization and they can choose.
For any major channel you watch, it's the creator decision that you see ads or not.
This applies to videos with no copyrighted content. If you use any excerpts or music that someone else claims, anything might happen to your video regarding ads.
One of the videos was hit with an automated DMCA takedown, one was hit with a "mature content" takedown, and the remaining 3 have ads on them now.
They will be improving ads on the platform by removing the creator's control over them.
> optimizing creator revenue and taking the guesswork out of which ad formats to use by removing individual ad controls for pre-roll, post-roll, skippable, and non-skippable ads on newly uploaded videos.
https://support.google.com/youtube/thread/233723152/simplify...
Anyway, at present it's possible to disable them if you have reached the monetization requirements on the channel, like 1000 subscribers and some amount of hours viewed.
Internet speeds are maturing, and maybe it is time to try again a self-hosted or distributed model. The hard part is to put ads in it, because ad-supported is traditionally the best medium for videos. However most video creators are already having sponsorship deals
I came across whole episodes of British TV on there this very week that were uploaded 12 years ago. I know they do a strict "no humans involved, ever" system going, but the programme name was in the title and the video was one of those ones inset into a fake background and the audio was original. I find it amazing that no one (or rather nothing) with a ban button has noticed that for so long.
If they actually cared even a microgram and they couldn't even get an intern to do a days' work searching for TV show titles, there'd be enough failed Reddit moderators out there who they could recruit who would gleefully do the job for free. Not that I would want them to - it's bad enough when only bring reactive to often-spurious complaints - but it's such a completely perfect lack of interest that it must be very deliberate.
General principle of the internet seems to be people can host what they like till someone who has legal ownership of it tells them to take it down at that point they're expected to take it down and keep it off their service unless added by the owner.
That's what google is sticking to because frankly any other method would be a nightmare.
The old tv episodes might have muddy/unclear ownership and so things continue to coast along until someone exercises their right of ownership.
Then again I guess YouTube makes money from ads on these videos being up, so that does explain the sphinx-like impassivity.
But the thing is: copyright law specifies that mechanical royalties are compulsory. Artists don't get to stop you from covering songs, as long as your distributor pays the legal n% to their distributor. But even if you pay LANDR or whoever to administer those royalties, so you can release your cover to Spotify and whatever, YouTube will still smack your channel for uploading the cover. At worst, content strike, at best you still lose all monetization.
As it turns out, "sync licenses" (the right to pair music with visual media) are not compulsory and that's what YouTube primarily cares about. Even if it's just a "video" of your album art with the music playing, you can still be arbitrarily penalized on the most popular platform for music discovery, because it's technically video and record labels can do whatever they want within the opaque framework YouTube has created.
What about a distributed model, but with a distributed ad network which pays people and/or the project?
Would it be enough to cover internet service provider costs of average folks?
My biggest issue with running a service like this would be the possibility that I'm all of a sudden serving CP from my house because the distributed model doesn't have a good moderation scheme.
Moderation tends to be the bottleneck with distributed services right now. The infrastructure is there.
Distributed, maybe.
Self-hosted? Not a chance. Sure, if you just want to share a video with some friends and family, that's fine. But if I reached the popularity of even a moderately successful YouTube channel (Say, 100K subscribers?), even the lucky few with gigabit internet at home could not handle the load.
No, it does not. There is no discussion to be had.
Vimeo, Rumble, DailyMotion, Facebook Video and self-hosting all still exist you know. There are plenty of alternatives.
I still have uBlock turned off on a few sites, though that list is becoming vanishingly smaller. 4Chan, funnily enough, has the best ads, where it's just old school banner ads on the top of the page and the very bottom of the page. No click hijacking, no embedded ads made to mimic organic content, no fucking audio and flashing lights ads. The only type of targeting those ads have is that the general audience that goes on 4Chan is into anime and Japan, both of which I don't care about. If the internet still had these kind of ads, I think adblockers would be much less of a "problem", but since 99% of them are invasive garbage, whoever is pushing them and whoever argues it's "immoral" to block them can go fuck themselves.
ads aren't inherently bad, irregardless of much data do they track. What really bad is how this ads is targeted and how much ads is delivered. I would LOVE to see relevant to my interested and situation ads. I like fpv drones and often see interested ads on instagram and led to a purchase. The problem after that I can't just edit the vector of my interests for ads targeting and keep bombarded with something not relevant to my situation anymore, and boy so much of it I see.
I really don't know why big ads network didn't move forward with user controlled ads mechanics - because we all humans buy something anyway, it's okay of being aware of the options on the market. It's not okay to mentally torture users with irrelevant, annoying and overwhelming amount of ads.
Unless they qualify their definition with something like “you may still see in-video sponsored content”, ad-free should 100% ad-free, and it is irritating that that (perhaps) through some nuanced definition of “ads” that they allow this. IMO this needs to be investigated by the FCC.
If you look at the advertising literature for Premium, it simply says “Enjoy ad-free videos…” with no asterisk or fine print that has any exclusions. Perhaps there is something deeply buried in one of the “terms and conditions” documents that allows for this, but I haven’t taken the time to look. My point is, YT and the content creators benefit from these ads on a supposed no-ad plan. Imagine if other streaming services like Netflix started doing this.
This happens because Youtube doesn't pay content makers a flat rate, unless they're a whale.
If Youtube wants to control their content and users - they should create their own protocols or at least closed network using web protocols, write their own client software and distribute it.
We (through a convoluted, but in the end democratic process that is supposed to represent the will of the people) decided that piracy is illegal not because there is some divine right of authors to get compensated, but because we believe that by making piracy too common we would kill the incentive for the future authors to create.
Similary, we will need to decide on the laws around ad blocking. If we decide to keep it accessable, then the downside is that both the infrastructure work done by Google (or its competitors) and the creative work done by authors will become less profitable and thus the quality will decline. If we don't envision this happening, we should definetly get ad blockers without a second thought.
Don't forget the flipside, the "morality" of interfering with a user's freedom to selectively ignore certain content.
The Roman Empire is moving away from the parameters of their implicit win, including the kind and amount of victories they score. Had they "competed" in world domination with the current policies, maybe everybody would speak Persian by now.
No, I won't be subject to the Byzantine Empire - because that was not part of the deal either. The empire was build on Rome. So until the Byzantines can figure out how to win _reasonable_ amount of _military victories_ - I won't pay taxes.
Do you realize how shallow your argument sounds ? :)) Of course Youtube is turning the screws now that they have the lock-in. Ethics have nothing to do with it. And they will turn the screws until you either pay up or stop going there all together.
There was a point in the past where video platforms were competing, and by no means was it clear that YouTube would end up dominating this area to the point of being close to a monopoly.
When YouTube won that race, they won it with a given set of parameters, including the kind and amount of ads they show. Society at large has, at that point in the past, basically decided that YouTube's offering is the best, and given this market domineering position.
YouTube is increasingly moving away from the parameters of this implicit agreement, in minor ways at first, more now. Had they "competed" in the video platform race with current policies, maybe everyone'd be using Vimeo now.
And here's the crux. YouTube can only do this because their old policies allowed them to establish this domineering position, and by doing so are breaking the implicit "deal" that actually allowed them to get into this position.
To me, there's currently no alternative to going onto YouTube. And no, I won't pay for YouTube Premium — because that wasn't part of the deal either. The platform won the race as a free platform. So, until Google can figure out how to serve a reasonable amount of safe ads — adblocker it is.