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How is a smaller user base more viable? You can look at Patreon to see just how few accounts make anywhere near a fulltime salary, let alone enough to pay for top tier video production. This model depends on scale.

Also how are ads "harder to implement"?

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Ads are harder to implement correctly. Obviously, you can get an AdSense script tag and probably get it working in a couple days, but if you want a good CPM, that's not plausible.

A smaller user base is more valuable as they're more targeted and likelier to buy subscriptions. There are your outliers like those Patreon accounts and Netflix, but they're not very common.

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