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Comment by javanix | Hacker News Reader

Of course their costs are ridiculous - I was trying to make the point that we are living in a "golden age" of relatively ad-free bliss on the internet. We won't have YouTube in its current, awesome-for-the-consumer implementation forever. Either they are going to have to start serving many many more ads, or they are going to have to scale back the amount of content they provide - both options are not really ideal from a user standpoint.

I don't think the online advertising model is a failure - I just think there is a lot more room for increased ad volume with it. As traditional media outlets decline, we are going to see more and more of that room exploited on our screens.

As far as AdBlock, no company wants to pay for eyes that they are never going to get on their ads. There was (and is) plenty of resistance to TiVo from the networks because they know that companies do not want to pay for commercials that consumers using TiVo can and will skip.

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> Either they are going to have to start serving many many > more ads, or they are going to have to scale back the > amount of content they provide

I suppose another option would be that we get more effective ads. Right now I get bombarded with flashy ads about things I have no interest in, so I no longer even see them. But if, say, HN would have a "Buy now" link off to the side every time one of us mentions a book, or "Learn <programming langugage>" with a link to the O'Reilly's book for that language every time we mention a programming language, I'll bet those ads might lead to a lot of sales. Arguably, you could even call them a service to the reader.

Not that I hold out much hope for this happening at very many sites...

There's a third option: ride it out on the revenues from the other business lines until the advances in software, processing speed, power consumption, storage, and network bandwidth drop your costs to a profitable level.

That might work for YouTube, but how many companies have the deep pockets of Google to ride it out long enough for technology advances to make their product profitable?

There is no way the vast amount of free, professionally made, high-quality content we have available online now continues without some sort of tradeoff in either cost, increased ad exposure, or reduction in quality. The transition period the internet is in right now has to end sometime, and I'm pretty sure it will come down squarely on the side of the content providers/producers.

Not too many, but we were talking specifically about YouTube, not some theoretical every-company. If you'll recall, my initial point in this thread was that it was kind of dumb to point to YouTube as if it were anything like a typical internet company.

And if you look at my original point, you'll see that I was trying to point out that not everything can stay free and ad-minimal forever.

I was simply using YouTube as an example of something that, absent of Google deciding to run it at a significant loss for 5 years (far from certain), will have to change its operating methods to something less pleasant to the consumer.

Where in our thread did I dispute that 'not everything can stay free and ad-minimal forever'?

The only thing I ever said was that YouTube wasn't a good example supporting your point, because it was in a completely different situation from most of the rest of the web, and that because of its unique situation, it actually could continue on at a loss for quite a while longer than most.

In other words, you were kind of right, but for the entirely wrong reason.

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