Pricing and Distribution 

YOUTUBE

Elasticity of Demand: I believe YouTube is a demand elastic because of their YouTube premium which people can easily choose to get their premium and be ads free. Which people can get a free access. Which people could choose another platform. 

Fixed Costs: These are the most important fixed costs of YouTube 

• Contract and Licensing 

• Content Moderation Systems 

• Platform Development 

Variable Costs: This is the variable costs that YouTube have to increase usage

• Streaming Costs

• Ad Delivery Costs

• Creator Payouts

NETFLIX

Elasticity of Demand: I believe that Netflix is a demand elastic because if Netflix price keeps rising then it will eventually lead people to choose another platform and cancel their subscription. 

Fixed Costs: These are Netflix fixed costs that stays the same 

• Licensing Fees

• Content Creation 

• Technology Infrastructure

Variable Costs: This is Netflix variable costs that can change user base 

• Customer Service

• Streaming Bandwidth 

• Payment Processing Fees Per Subscriber