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Technology
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the infrastructure cost required to host the quantity of video YouTube has is insane.
Microsoft could have done it if storage was all. They got the infrastructure, the tech, cdn infrastructure , and even had a lot of big business customers already using Azures media streaming services. Instead they are withdrawing.
And the fact that Microsoft noped out says it all.
Basically, the only orgs that have a snowball's chance of hosting a twitch/youtube are Amazon, Google, and Microsoft on account of them also being three of the largest "cloud" providers and having the resources at cost. Amazon/Twitch are scrambling to find a way to deal with the increasing shift to sponsored streams, Google/Youtube are cracking down on adblockers, and Microsoft just gave up.
I said infrastructure, not just storage. and yes there is even more involved like the user base, as we have seen with social media time and time again. Even if Microsoft built an even better YouTube (lol), it's still very likely no one would use it. It's a massive investment with a lot of risk.
every computer gets a government-mandated tool installed that reserves 50% of your upload speed to help host YouTube. If you are caught without it, You're going to jail.
/s