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Comment by elektor | Hacker News Reader

Do you have a source for that $2.5 figure?

That number seems incredibly unlikely. I’m a relatively casual Snapchat user, and from ~45GB of cellular use, ~3.5GB is from Snapchat. That’s just egress bandwidth (from Snapchat’s point of view), they also have to ingress my snaps as well as temporarily host stories and snaps in transit.

Q1 earnings (https://s25.q4cdn.com/442043304/files/doc_financials/2023/q1...) says 383M daily active users and $1.3B in costs (including sales, administrative, etc), for ~$3.50/user/quarter or ~$14/user/year. So far above $2.50/user/year. Even just using cost of revenue is ~$4.50/user/year.

I clarified that I meant just infrastructure costs, and posted the source.

Even so - what's $4.50 per user per year - 40 minutes of minimum wage work? 45 seconds of a lawyer's time?

For sending, and processing, and receiving GBs and GBs of video?

For (not even) this cost, we give up control of political narratives? We let people like Huffman and Musk and Zuckerberg control what we get to see?

They take money from tinpot dictators and a selection box of wealthy grifters. We let our parents and grandparents get taken advantage of by every scam artist on the planet with a few dollars. Why? To save $4.50 a year?

I think the big cloud providers have warped peoples' sense of what these things actually cost (and also the massive scale of these userbases that allows the costs to be spread widely). Egress is one places where providers make their (significant) margins.

To be clear, I'm talking about solely infrastructure costs.

https://www.zdnet.com/article/as-snapchat-use-soars-during-p...

Divide the costs cited by Snapchat themselves by their daily users and you get $~2.50/yr.

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