Seems like a contradiction, but it's true....
Although many large social media sites such as Facebook and Veoh are experiencing dramatic global growth, this growth is actually having a negative impact on their profit margins.
These sites rely on advertising to make money, but in many developing countries the advertising doesn't translate into profit. The cost of making content available in these countries is also higher because companies have to purchase more servers to make content available to limited bandwidth users.
Some companies are taking steps to decrease these costs by lowering the resolution of videos and photographs in developing countries and others such as San Diego-based Veoh are restricting access in Africa, Latin America, Asia, and Easter Europe completely.
Source: New York Times
Comments