I used to host video on a custom site, mainly lecture material for an audience of about 100-200 people so there were no economies of scale involved. A VPS with 2TB of transfer was about 10eur/m. Video was encoded for about 500MB/hr (encoders have improved, but hosting prices have probably increased so figures are just ballpark).
As a (very) small scale provider video was costing me about 0.25 cents / hour. It is certainly cheaper for a larger provider. Ad rates are not that low, the margins involved are huge.
For a premium server I would take a heavy user as a model, say 8hr/day, giving a cost of 60 cents per month. Assume processing fees and overheads are about 30%, and a user is willing to pay $10/m for a service. That still leaves $6.40 to be split between platform and content creator.
Yes, video is expensive compared to text. But in absolute terms the costs are not that expensive.
As a (very) small scale provider video was costing me about 0.25 cents / hour. It is certainly cheaper for a larger provider. Ad rates are not that low, the margins involved are huge.
For a premium server I would take a heavy user as a model, say 8hr/day, giving a cost of 60 cents per month. Assume processing fees and overheads are about 30%, and a user is willing to pay $10/m for a service. That still leaves $6.40 to be split between platform and content creator.
Yes, video is expensive compared to text. But in absolute terms the costs are not that expensive.