There are lots of reasons that one area of your company may make less money. It’s like how the NYC subway or post office technically don’t “make money” but the value they bring to the whole system is a net positive by enabling all the other companies to make way more.
Data aquisition for analysis, AI training, tracking and simply having monopolized a space. Theres a lot of positives and indirect profit that might make it feasible.
But does it “Good” for the public like say road improvement?
It does “Good” for the company by increasing the quality of the output of it’s AI/LLM, more data to track users etc.
Prominent example is printer hardware and the ink. Hardware is sold at little mark-up or at a loss and then they force you to use their iteration of liquid gold. Printer ink is dirt cheap to manufacture and costs more than human blood.
There isn’t a reason to run a section of your company if it costs you money.
It’s funny that you say this, because Google intentionally ran YouTube without making any profit from it for many years. The goal (which they succeeded in) was to starve out any competition and establish YouTube as the online video monopoly. Ever since establishing that monopoly, they’ve been squeezing more and more money out of the platform knowing that social inertia will work against any would-be competitors (everything is on YouTube, all of the content creators are on YouTube, all of the viewers are on YouTube, so how does someone convince enough people to move to another platform?).
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Yes but does YouTube it’s self make money? There isn’t a reason to run a section of your company if it costs you money.
I am not justifying 17 ads in a 10 minute video, but no company keeps a product that doesn’t make money
True but data collection is still done and generates $$$
Think about gmail & Google docs
That’s why they want to run more ads.
There are lots of reasons that one area of your company may make less money. It’s like how the NYC subway or post office technically don’t “make money” but the value they bring to the whole system is a net positive by enabling all the other companies to make way more.
Government ≠ Private/Publically shared company.
Google couldn’t care less about what it brings if it doesnt make more money than it takes.
Data aquisition for analysis, AI training, tracking and simply having monopolized a space. Theres a lot of positives and indirect profit that might make it feasible.
But does it “Good” for the public like say road improvement?
It does “Good” for the company by increasing the quality of the output of it’s AI/LLM, more data to track users etc.
You just confirmed what I said…
Yes there is a reason to run a part of your business at a loss. It is well known market strategy and it is called a Loss Leader.
You offer a product or services at a loss because it helps you generate more revenue in another part of your business.
And plenty of companies keep products that don’t make money, because they are Loss Leaders into products that do make money.
https://en.m.wikipedia.org/wiki/Loss_leader
Prominent example is printer hardware and the ink. Hardware is sold at little mark-up or at a loss and then they force you to use their iteration of liquid gold. Printer ink is dirt cheap to manufacture and costs more than human blood.
It’s funny that you say this, because Google intentionally ran YouTube without making any profit from it for many years. The goal (which they succeeded in) was to starve out any competition and establish YouTube as the online video monopoly. Ever since establishing that monopoly, they’ve been squeezing more and more money out of the platform knowing that social inertia will work against any would-be competitors (everything is on YouTube, all of the content creators are on YouTube, all of the viewers are on YouTube, so how does someone convince enough people to move to another platform?).
That’s how they’re able to pull this anti-adblock nonsense, in fact. If they hadn’t killed off all competitors, everyone would just be going to them.