BUS-Unit 2 Discussion: Global Marketplace and Business Ethics Responses
Youtube is a video-sharing website that is used to entertain others. It has many useful and even humorous videos. Youtube intends to merge with a number of other well-known platforms. They recently launched an online marketplace for other video entertainment services. Youtube is increasing its market value by collaborating with services such as Apple, Roku, and Amazon. These big-name streaming services make a lot of money because they include popular television networks like Starz and Paramount+. Youtube intends to split revenue from subscriptions and advertising sales generated by the services used. Because advertisements have caused them to spend more money, this streaming service relies on subscriptions. This resulted in a drop in ad sales as a result of the economic slowdown that YouTube experienced last quarter. As stated in the article, “Youtube Launches Streaming-Service Store as Competition Intensifies for Viewers,”, written by Miles Kruppa, “Subscription revenues from YouTube’s ad-free Premium offering and YouTube TV are expected to reach about $9.1 billion this year, according to Credit Suisse estimates.” Revenue is increased by making their services ad-free and charging for them. Because they were dealing with a decrease in their funds, they thought it would be prudent to charge for no advertisements. I believe Youtube made a wise decision in charging. Many people aren’t patient enough to sit through ads and would rather pay to have them removed. It’s better for YouTube because they won’t have to deal with as much revenue loss.
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