this post was submitted on 20 Jul 2023
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From an actual cost perspective, a video streaming on YouTube is not even remotely the same as a movie ticket. The company selling the movie ticket has to price each ticket to ensure that the company can make enough money to cover:
Google has its own costs of course, but for essentially the same thing (showing a person a video), Google's costs are vastly lower per person, because the video they are showing you is a digital file that lives on a server, and the same file is shown to everyone who wants to view it.
Another example: A book printed on paper requires a lot of physical materials - ink, paper, cardboard, glue, etc. Selling a paper book requires machines to print the pages, trucks and trains to transport raw materials to and from factories, and to locations where they book can be sold.
For a paper book to end up in your hands, lumberjacks need to be paid to cut down trees. Miners need to be paid to dig the materials required to make ink out of the ground. Printing press operators need to be paid. Truck drivers need to be paid. Warehouse workers need to be paid. Delivery drivers need to be paid.
A Kindle ebook is a digital file that has been uploaded from the publisher directly to an Amazon server, and Amazon is certainly able to provide itself with server space at far lower than retail cost.
A brand new printed paperback version of the lastest David Baldacci novel costs $19.99 on Amazon. The Kindle version of the same book costs $14.99. Considering that the Kindle version has almost zero of the costs associated with the print version, and is literally the exact same digital file that is sent to every single person who purchases the ebook, the ebook, compared to the paper book, generates almost 100% profit with almost zero additional costs or overhead.
Given this, should an ebook cost almost as much as a real book? Should a YouTube Premium subscription cost as much as a movie ticket?
Or are two of the most profitable companies on the planet simply charging "real" prices for digital products because they have a de-facto monopoly in their respective markets, and they can basically just do whatever they want?
A) Phyical books cost way more to buy than they do to print. You are mostly paying for the writing/editing.
B) Youtube is nor charging anywhere near "real" prices for their subscription. Renting movies on youtube is generally in the $3-$5 range, far cheaper than seeing a movie in a theater. The subscription gives you unlimited access to almost their entire library of videos and music. The only physical analouge is a library, but those only exist due to government funding and a quirk of copyright law that does not apply as well in the digital realm.