If you want a wildly profitable content distribution platform, it's best not to pay for your content... % of revenue spent on content by platform: YouTube: ~55% Spotify: ~70% Netflix: ~45% TikTok, Facebook & Instagram: Effectively 0% !!! % profit margin by platform: YouTube: 0-10% (maybe? revenue is public but not profit) Spotify: 1-2% Netflix: 10-20% TikTok, FB, IG: 40-50% !!! The greatest trick the devil ever pulled, was convincing the world that social content wasn't worth paying for.
This is part of the reason why AI generated content is almost an inevitability on YouTube way down the road... every view that isn't attributed to a human creator is an opportunity for YouTube to keep a bigger share of the pie, a la TT, FB, IG
Social platforms like TikTok and Facebook show that user-generated content can really rake in the profits without the hefty content costs Beau.
Who’s gonna stop this man! he’s saying all the things they don’t want you to know!
Well said man
CEO & Founder @ CreatorCut
7moPretty much every scaled media platform started the same way. Cable started by effectively stealing broadcast signals and charging monthly fees to subscribers for access. HBO started by paying pennies to movie studios for windows the studios were not monetizing at the time. MTV, in its earliest days, had music artists begging them to telecast music videos for the marketing benefit, and they didn't pay a dime. Netflix built to streaming by paying wholesale for DVDs and devising a better distribution mechanism and then got into streaming by paying a (relative) pittance for the digital rights to Disney movies that Starz bought from Disney as part of their film output deal for premium cable. Even the original Hollywood studio system grew from paying talent very little for early movies that lacked the quality of live theater, but were more accessible to the cost-sensitive masses. People will say that social is different - and they're right - but models also evolve.