this post was submitted on 07 Oct 2023
686 points (97.6% liked)
Technology
59030 readers
3106 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
How does that work, exactly? For something like a railroad or a power grid, you get a natural monopoly because you need a system to connect everyone to everyone else for it to really work, and you need to pay to build out the connection to each person.
For video streaming, you need to pay for servers to transcode, store, and serve the video. Which is expensive, sure. But then each user comes in over the Internet; you aren't paying to connect directly to their house, and you aren't putting a CDN node in every town when the town has 5 users who can just talk to the central deployment.
If you want to run ads, you find some network that places video ads, and you get the ads from them and you run them. Maybe they don't pay enough and the service is not profitable, but what would make that change if the service were bigger?
Where are the huge, unassailable costs? Where is the revenue you can't get unless you are the absolute biggest?
The issue is content. Sites like daily motion didn't have the content to bring in the user base. No users means less incentive to make content means less incentive to make content for it, means less users and so on... that's the real reason no one's got competition