David Rosenthal: preference

Transcript context

…Exactly. That is what it is. Also, YouTube is serving 4K content. Their bandwidth and hosting costs got to be at least $3-ish billion. Instagram is I'm sure are high, too, but you think about the level of compression that people are totally happy with on mobile screens and the fact that like, "Oh, they haven't released an iPad app." They’re resource-constrained but, gosh, you might want much higher quality stuff if you're having it shipped down to a Retina iPad Pro. I guess the macro point here is I think it's always worth comparing two similar companies like this, YouTube and Instagram. Instagram doesn't pay for a lick of their content. YouTube has half its revenue going out the door. I think probably significantly higher hosting and bandwidth costs. Yeah. It's important to know. too. We're not going to do value creation, value capture on this episode, but they're a bunch. We're not talking about what's good for the world, what's not good for the world, having a lot of arguments on Instagram is bad for the world and how it is right now. But purely as a shareholder from an investor economic perspective, if I could hold shares on Instagram versus YouTube, I would put all 100% of my dollars between those two into Instagram and zero into YouTube, even though I love YouTube. Burn. Totally.…

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