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What assumptions make it less than profitable at $20? If the hw costs are $1000 and if you'd need a hw setup per every 5 subscribers, you'd get $2400 in 2 years for $1000 in hw investment. Power, bandwidth and other costs are something but doesn't sound obviously unprofitable to me.

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The hardware could be used for other things I think 1 4080 card tiers also 2 1080 cards equivalent. I wound bet they rent out capacity for other stuff during the day too.

I would also be surprised if they were only 5-1 on users still it’s probably not their most profitable venture.

First, you take USD4-5 off that in tax. Then more for support, finance and and marketing. Then electricity, bandwidth and insurance. Then games licences. Then hw...

Corporate tax is a flat 21%, and that's on profit, not revenue. I don't believe Nvidia pays anything for "licenses" either. There's no way that overhead should make them unprofitable even at retail prices.

I was thinking of sales tax / VAT.

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