WEBVTT

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this video might not be the biggest but it could easily be the most unnecessary

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risk of my career the smart play for me would have been to jump onto the hate

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bandwagon anger cells and the internet

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is pretty freaking angry about the premium pay wall that YouTube has been

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experimenting with on 4K videos but that

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would have been a huge disservice to our community so instead of doing that I've

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spent the last few days thinking about it a lot and you know what I'm still

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pretty frustrated I mean no one likes being given something only to have it

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taken away later and no one likes feeling powerless in the face of an

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entity with the power and resources of Google as a full-time YouTuber trust me

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I feel that but I've also come to realize that this might be a necessary

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move if we want to preserve the good things about this platform really good

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things like the world's largest free repository of independent news media

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educational resources and cultural expression good things like this segue

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to our sponsor enlisted enlisted is a

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free-to-play multiplayer World War II shooter jump into large scale battles

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from authentic moments in history like the invasion of Normandy check it out by

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following the link in the description before you even say it I am no corporate

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bootlicker over the past year I have gone to the mat with YouTube a lot more

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times than I've taken their side notably over the utter incompetence of their

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comment moderation efforts their removal of the dislike counter and the way that

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their half effort HDR implementation has literally held back the entire video

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production industry but in this case once I calmed down a little I was able

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to start putting together the pieces and we're going to start with the biggest

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and the most obvious one cost since 2007

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the amount of content per minute uploaded to YouTube has grown

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exponentially and it's common knowledge that data centers are expensive and the

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more data you serve the more data centers you need but as scary as this

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trend line already looks with that in mind it doesn't even begin to tell the

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whole story first of all it doesn't account for the size of the video files

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being uploaded back in 2007 digital cameras were relatively rare and the

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ones that we had recorded at pretty low resolutions anywhere from 240p to 480p

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that means a typical minute of video would take up a trifling 35 megab or so

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and that was the highquality source file

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no big deal then right especially since YouTube can re-encode those uploaded

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files and serve them at a lower bit rate to save on both storage and bandwidth

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costs but let's fast forward a bit to 5

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years later in 2012 not only had the

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sheer volume of video uploaded to the platform increased 10 fold but HD 720p

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video recording was available on commodity smartphones with the latest

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Ione phones capable of full HD 1080p that puts our typical minute of

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footage at anywhere from 75 to 100 megabytes through compression we can

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still probably cut our storage and hosting costs in half but even if just

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say 40% of new uploads are in HD now and

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I don't know 10% or in 1080P corrected

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for video size our bar graph will start to look a little bit like whoa uh a

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problem except it actually wasn't at

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least not yet YouTube's user base and their revenue also increased

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dramatically during this time meaning that even if they weren't making money

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on it yet Google could easily justify the ongoing investment into their video

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serving side hustle and besides it didn't hurt that every time Google built

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a new data center it was cheaper and more efficient than the last one in just

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3 years from 2009 to 2012 mechanical

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storage drives went from a cost per Gigabyte of 11 cents to just 5

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that's less than half the price Mo's law to the rescue again right uh about that

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to be clear not everyone agrees with NVIDIA CEO Jensen Wong but even Mo's

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Law's most stalwart Defenders have to admit that things have been slowing down

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for a while let's Jump Ahead another 3 years to demonstrate to

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2015 even ignoring the pricing anomaly that was caused by the Thailand floods

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storage drives fell only about 25% this

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this time around there are a number of reasons for this but the main issue is

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that it has become extremely difficult to pack zeros and ones more densely on

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the spinning magnetic platters inside these devices to be clear there are

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still cost savings to be had by running fewer higher capacity drives and filling

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them with helium gas and whatnot but those efficiency gains are nothing

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compared to the data bomb that was about to be Unleashed on YouTube 2015 was the

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first year the I phone would come standard with a 4K rear camera and 4K is

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a very different kind of Beast compared to anything that came before it with

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four times the pixel count and very nearly four times the data rate I

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suspect that the only thing that saved Google servers from immediately Lighting

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on fire is that Apple configured the camera app on that generation of iPhone

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to record in 1080p by default likely not out of consideration for their bit Ral

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but rather because the base model iPhone 6s could hold about 40 minutes of 4K

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footage total and also maybe because except under very specific conditions

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you could barely even tell the difference between 1080P and 4K video

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that was recorded on that phone anyway I'm going to get into more detail about

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that later the point is that even if only 10% of video uploads transitioned

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to 4K per year over the next few years YouTube would need to find some way to

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grow their revenue or they could risk becoming nonviable obviously they kept up with

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their their efforts to grow the user base with big pushes in non-english-speaking regions like India

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and Latin America but by 3 years later

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the end of 2018 YouTube had nearly cracked 2 billion with a B monthly

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active users so unless they started up

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some kind of diabolical program where they actually started breeding more

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people to consume content on their platform it was pretty clear that their

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days of exponential user growth were well behind them they needed to find

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another way to get profitable and do it fast or daddy Google excuse me Alphabet

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by this point was going to do what they do best and pull the plug enter YouTube

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premium sure it did exist before this

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but it wasn't until around this time that YouTube started pushing the program

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hard they've tried various ways to add value to premium over the years through

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original content background playback and bundles with Google Play music Rip but

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of course the main attraction has always been the removal of ads how could they

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afford to remove the ads you might ask well because even for a data mining

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advertising machine like Google a paid user even for just a few dollar a month

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is worth way more than an ad supported user like it is bloody hard to make

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money on free tier ad supported content

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I mean Twitter took nearly a decade to have a single profitable year and they

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serve almost exclusively still images and text which isn't to say Google

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hasn't tried since then you've probably noticed that ads have gone from simple

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popups in the videos and pre-rolls to popups pre-rolls mid rolls and end rolls

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some of which are stacked with two or more on top of each other and a recent

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trial had Google piling up as many as 10 ads during a single content break

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yikes and this strategy of packing in more ads has served them pretty well

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with Revenue growth finally turning a corner over the last couple years

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outpacing user growth significantly the problem is that it's not enough look at

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the user upload Trend and remember that unless they start deleting old videos

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they need to store all of the previous year's uploads as well oh right and Over

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The Last 5 Years hard drive prices have essentially bottomed out following only

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about 1 cent per Gigabyte making matters

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worse storage is only part of the problem on our video platform float

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plane 4K playback makes up only about 6%

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of our views but over 20% of the total

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bandwidth that we have to pay for and while it's harder to dig up solid

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historical data for this compared to hard drive costs it is clear that there

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has been a stagnation in bandwidth costs as well that is to say they're not

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getting lower how bad is it well to the

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point where Google went as far as to co-found the alliance for open media in

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2015 AO media is a Consortium whose main

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purpose so far has been to create and Foster industry support for av1 a video

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code that manages similar 1080p visual quality to h264 while requiring only a

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little over half the data transmission or bit rate ah bit rate I said I would

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talk in more detail about other factors that affect image quality and now is the

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time the second reason that I believe this move makes sense is that serving up

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more pixels isn't necessarily the best

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way to improve the user's experience and this focus on how many P's or KS a video

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has has contributed to a ton of consumer

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confusion about it for starters pixel count is one contributor to the

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resolution or the perceived Clarity of an image but it is not the entire

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equation everything else is important too from shot composition to color

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management to contrast and natural bokeh

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don't believe me well here's a video I ripped off from this guy Marquez Keith

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brownley in HD that looks pretty good

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for 1080p right for comparison here's

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some 4K video but from a cell phone it's

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tiny sensor low bit rate internal recording mediocre dynamic range blocky

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processing and poor image stabilization all contribute to the blurry ugly

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viewing experience that you see before you so then while there are absolutely

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creators on YouTube who invest heavily into their production values and whose

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videos are best enjoyed with more pixels I think it's fair to say that they're a

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minority and I also think it's fair to say the same for users who reason number

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three mostly don't actually need 4K I

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know I know like you I want to use the

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most advanced platforms and get the absolute most out of my devices and

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services be they gigabit plus internet connections or 8K TVs but please hear me

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out while I don't support everything that Apple does I wholeheartedly support

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their use of retina branding to describe displays that are Sharp enough from a

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typical viewing distance regardless of their pixel count they rightly

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determined years ago that unless you happen to be a bird of prey you not only

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do not need a 4K display on your phone but the tradeoffs in cost brightness and

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power consumption could actually make it a

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disadvantage that means that right out of the gate 43% of you watching right

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now straight up do not need 4K moving on

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the latest Steam Hardware survey shows that 4k monitor penetration is at

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roughly 15% while these numbers from Statia Peg 4K TVs at about

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44% almost all tablets top out at around

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1440p and again rightly so meaning that

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at most even if you have 2020 Vision

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only about 10% of you actually have the hardware to benefit from a 4K stream

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option well sort of one of the main

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benefits of YouTube's 4K selector is that pixel count aside it streams at a

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much higher bit rate than 1080p so in

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Practical terms that means that it has fewer compression art effects like

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bending or blocking so that even if you're watching in a small window you

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can often make out extra detail in the image but the good news is that 1440p

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offers a middle ground High bit rate option and isn't on the free tier

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chopping block at least for now and even if it was I think there's a solid non-4k

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solution to that going forward it ties in nicely with reason number four

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juicing more and more pixels through the pipes it's just plain bad inefficient

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Tech once you've got enough pixels a better way to boost perceived Clarity is

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to bump up color saturation and contrast that's where HDR comes in there's still

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some work to do on this but the word on this treat is that YouTube has been

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investing significant resources into fixing their HDR implementation which

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also won't be paywalled and will result in much higher quality 1080p video with

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a much more modest increase in data rate another area where I think YouTube could

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stand to redirect these 4K payall savings is audio quality I mean sure

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it's not as headline worthy as 4K or 8K

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or whatever but audio is hugely important especially for music videos

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which last time I checked are kind of a big deal on YouTube Google's lasay Fair

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approach to improving audio has been a point of confus Fusion for me for a long

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time and is actually one of the main drivers that brought garbage time

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streams over to our in-house video streaming platform Flo plane which by

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the way charges extra for 4K cuz it's

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expensive but it's also pretty sweet with loads of behind the scenes and

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Extras like this one go check it out Floatplane.com to be clear there's a

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big difference between what we did charging for 4K in the first place and

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the bait and switch that Google is pulling here and Google has no one to

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blame but for the backlash that they are undoubtedly going to get for this move

00:14:03.079 --> 00:14:07.600
this Silicon Valley money furnace don't

00:14:06.120 --> 00:14:12.680
worry we'll figure out how to make money later model has always seemed pretty

00:14:10.079 --> 00:14:20.160
short-sighted to me but the numbers make it clear that even if this causes a big

00:14:15.920 --> 00:14:22.320
PR hit and it will something has to give

00:14:20.160 --> 00:14:25.720
but I have to at least give YouTube credit for sticking to its core

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principles when it comes to supporting creators through the change unlike

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twitch who recently announced a change in Creator compensation YouTube isn't

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just cutting costs and pocketing the difference they also aren't taking away

00:14:37.959 --> 00:14:44.120
Creator ability to upload their videos in the highest possible quality for

00:14:42.120 --> 00:14:47.560
those who want it what they're doing is they're identifying an area where they

00:14:45.680 --> 00:14:52.160
can cut their costs to support non-paying customers convert a chunk of

00:14:50.120 --> 00:14:57.240
those into paying customers and then share this uplift with their creators

00:14:54.800 --> 00:15:02.480
which is reason number five that this makes sense a view from a premium

00:15:00.079 --> 00:15:07.399
subscriber is worth substantially more than an ad supported view while also

00:15:05.199 --> 00:15:11.839
being a better lower friction experience all around and this move is going to

00:15:09.680 --> 00:15:16.079
drive more revenue for creators and therefore drive more highquality content

00:15:14.079 --> 00:15:21.800
to the YouTube platform YouTube's position as the most desirable place for

00:15:18.920 --> 00:15:26.440
online creators to be is no accident they were so far ahead of the

00:15:23.720 --> 00:15:30.399
competition on this that no one even now has managed to catch up I mean think

00:15:28.199 --> 00:15:34.839
about it a aside from having crap TI your video quality Tik Tok sucks at

00:15:32.680 --> 00:15:40.759
compensating creators oh yeah if you go like live on there they take 80% of like

00:15:37.360 --> 00:15:42.880
if if people people tip or anything like

00:15:40.759 --> 00:15:47.319
that they'll take 80% of it you can expect the Exodus shortly after shorts

00:15:44.839 --> 00:15:51.360
monetization goes live next year and I already mentioned twitch which rewards

00:15:49.319 --> 00:15:54.720
its top tier creators pretty well but then completely falls apart once you

00:15:53.199 --> 00:15:59.720
start looking at anything beyond the top 1% and then there's Facebook who managed

00:15:57.399 --> 00:16:03.360
to rug pull a whole gener ation of starting out content creators by

00:16:01.480 --> 00:16:08.000
focusing hard on video and investing a bunch of money then bailing just as hard

00:16:06.000 --> 00:16:13.360
when the Zuck first joined VR chat and decided to how Hugh that shiz and so

00:16:10.480 --> 00:16:19.639
that's the real reason why YouTube keeps getting worse and you keep watching it

00:16:16.199 --> 00:16:22.440
because it's where all the content is so

00:16:19.639 --> 00:16:26.519
if I'm in YouTube's shoes I'm going he this thing cost us a fortune most people

00:16:24.560 --> 00:16:31.839
don't really need it and some of our most successful creators don't even use

00:16:29.079 --> 00:16:36.279
it pay Walling 4K is kind of an obvious move but even after hearing all of this

00:16:34.440 --> 00:16:40.759
I can totally understand if you might conclude that Google makes so much money

00:16:38.800 --> 00:16:44.959
they should just suck it up and pay like they said they would the thing is though

00:16:43.079 --> 00:16:50.920
even if you think that they could pay and they should pay they won't pay why

00:16:48.120 --> 00:16:56.839
not you ask well why don't I turn that back around on you and ask why would

00:16:53.120 --> 00:16:58.680
they the best possible argument I can

00:16:56.839 --> 00:17:04.839
think of for them to just keep eating this cost that is literally trending

00:17:01.720 --> 00:17:07.640
Skyward to a vertical line is it would

00:17:04.839 --> 00:17:11.360
be the good guy thing to do but Google has never done anything out of the

00:17:09.120 --> 00:17:15.919
goodness of their hearts so why would you expect them to start now maybe it's

00:17:13.679 --> 00:17:20.959
just time for the semiannual reminder that publicly held corporations Will

00:17:18.520 --> 00:17:25.919
Always by law act in their own self-interest and in the interest of

00:17:22.959 --> 00:17:31.120
their shareholders so we are left with a harsh Choice then keep the truly

00:17:29.000 --> 00:17:35.039
important things about YouTube and subsidize them through a small

00:17:32.760 --> 00:17:41.320
percentage of users you know the ones with 4K monitors and TVs or open

00:17:38.440 --> 00:17:44.960
ourselves up to other much worse cost cutting measures I mean what if the

00:17:43.120 --> 00:17:49.039
alternative is to start pruning old videos and we have to give up that

00:17:46.799 --> 00:17:52.919
library of rarely watched content that you might need someday when it's time to

00:17:50.640 --> 00:17:56.760
repair the Obscure washing machine you inherited from your Aunt Freda some

00:17:54.760 --> 00:18:01.280
people might feel that just adding more ads is a viable path forward but I

00:17:59.440 --> 00:18:06.400
honestly disagree I think we've reached a practical limit to how many ads

00:18:03.799 --> 00:18:10.400
YouTube can cram into a video so the revenue growth isn't going to come from

00:18:08.039 --> 00:18:14.280
there the av1 codec that I talked about before is more efficient and it helps

00:18:12.720 --> 00:18:18.919
with storage in ways that I didn't anticipate that could actually Merit a

00:18:15.960 --> 00:18:25.360
follow-up video but it comes with new costs particularly computational ones so

00:18:22.200 --> 00:18:27.400
it's not magic meaning that if this pay

00:18:25.360 --> 00:18:31.679
Walling 4K is what it takes to drive enough premium users that we can kick

00:18:29.480 --> 00:18:37.880
this data crisis a few more years down the road then I guess I'll just make

00:18:35.200 --> 00:18:42.559
some demands like hey at least boost the 1080p bit rate while you're ated or hey

00:18:40.440 --> 00:18:47.640
you should make 4K available to channel members who don't also have premium but

00:18:45.960 --> 00:18:52.520
the reality of it is whether YouTube listens or not I'm going to lie down and

00:18:49.600 --> 00:18:57.240
take it and so will you if you're being honest YouTube is essentially a monopoly

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at this point and there's not a lot we can do about it it's not bad though it's

00:19:00.360 --> 00:19:07.159
also one of the Bonafide Wonders of the World in my opinion and I for one live

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better with this incredible resource that helps me do everything from learn

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about black holes to fix my washing machine and allows me to tell you about

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our sponsor enlisted enlisted is a free-to-play World War II multiplayer

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seen throughout the war to rare prototypes that you hardly see in other

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head to the link in the description and start playing enlisted for free today if

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you guys enjoyed this video or maybe you didn't and you'd rather watch me tear a

00:20:01.039 --> 00:20:06.960
chunk out of YouTube uh you can check out one of our recent more ranty videos

00:20:04.559 --> 00:20:11.320
about their changes like uh the one when they removed the dislike counter