YouTube Red sets ablaze web economics
This article was first published by dmcityview.com A common intro to economics question asks “Would you be okay with free phone service if in exchange your calls were interrupted with frequent commercial breaks?” At first the student immediately is drawn to answer yes, because the word free is so attractive, but after a moment the thought creeps if the service is truly free if you’re subject to advertisements. Our lives are inundated with ads; television ratings weight shows for proper ad rates, newspapers and magazines would cost a fortune if they didn’t run them, and millions of websites subsist on them. Now one of the biggest online advertising delivery platforms is offering users the inverse of that economics riddle; Would you be willing to pay for YouTube if it meant no longer seeing advertisements? Even though that question pushes the respondent to forgo “free,” heavy YouTube viewers do not care. YouTube is the number one streaming media website. There are billions of vi...