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It's economies at scale, similar to how you would say "how can dollartree afford to offer X at $1" or how Lidl is able to sell you eggs at 10 cents per egg.When you have large volume, you can offset the costs of 1 GPU server for video encoding and some high-volume storage servers, while having an otherwise pretty simple front-end with some redis caching. As long as the CPM paid by advertisiers (which are hard to find in these business models) outweigh the epenses, these organisations can keep on running. And this clearly is the case, otherwise we wouldnt be having this discussion.
It's economies at scale, similar to how you would say "how can dollartree afford to offer X at $1" or how Lidl is able to sell you eggs at 10 cents per egg.
When you have large volume, you can offset the costs of 1 GPU server for video encoding and some high-volume storage servers, while having an otherwise pretty simple front-end with some redis caching. As long as the CPM paid by advertisiers (which are hard to find in these business models) outweigh the epenses, these organisations can keep on running. And this clearly is the case, otherwise we wouldnt be having this discussion.
