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Google makes a $15B a year from YouTube.

That pays for a lot of storage. And storage is very cheap at that scale.


Cost of streaming videos is not storage, it's dominated by bandwidth. Bandwidth is expensive when you can't cache videos the way Netflix does.

a) Google doesn't pay for bandwidth. They have peering agreements because of all the dark fiber they bought (https://www.lightreading.com/optical/dwdm/google-dark-fiber-...)

This isn't exclusive to Google though - most large bandwidth users have peering agreements.

b) Google does have edge caches[1]. It's true that the long tail of YouTube videos is longer than Netflix, but since Google doesn't pay for traffic (see (a)) this only affects speed, not cost.

[1] https://peering.google.com/#/infrastructure

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