The latter really wouldn’t surprise me. A service could be making four times the investment in profit and many investors will still push to get a few more cents out of it at any cost.
RaineV1
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Cake day: August 10th, 2023
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While I can agree with the 4K argument a bit for the hosting is expensive part, I do think it goes way beyond that or long videos. Youtube exists on a scale most don’t even realize. Tens of millions of people upload content every day. We’re talking thousands of hours worth of video every day.
Not to excuse YouTube for a lot of dumb decisions they made, but even on their best day the site just breaks even due to the cost of hosting.