They improve their stack on multiple fronts

1 - They use their own custom hardware encoders now optimised for their scale (previously they’d use a ton of intel cpu for encoding) This is often not possible for smaller startups to have their own custom hardware, but one could setup their own Xilinx FPGA based hardware accelerated encoding servers, Xillinx Alveo Boards are popular for media acceleration, they support both ffmpeg and gstreamer for acceleration needs. Nvidia Nvenc encoding is decent too but mostly for the most popular encoding types, and honestly an fpga based accelerator is probably better after cpu unless you have gpus lying around.

2 - Much lower bandwith costs, a lot of startups build their streaming applications on top of AWS, but that’s insanely expensive due to the insanely expensive price of AWS itself

As a streaming service you could immediately cut down costs by shifting to ovhcloud, hetzner etc, they often have dedicated gameserver like offerings which are beneficial for streaming usecases too. That itself should allow you to bring down costs by 10x or even more (you have to choose the plan correctly on other tho, ovh, hetzner etc say you have unlimited bandwith on some packages but there is always a catch or they throttle you later, need to be careful about the offering you choose but otherwise a lot better)

3 - Having colocation hosts with your own servers setup and each video encoded at different sizes for different media devices also help only sending the near-right amount of content quality based video size based on device screensize and resolution. This gives a lot of additional cost advantage

4 - Running your own CDN relay service, I’ve run my own cdn service before to cut down on costs aws cdn is quite expensive, but even cheaper cdn services like bunnycdn, etc come at a decent markup, cloudflare cdn can be nearly free yes, but they’ll kick you out the moment you start consuming too much bandwith. So I hosted my own anycast network with geodns and controlled multiple servers across the globe acting as cdn with ansible playbooks for maintenance and control, and monitored them with my own monitoring stack to keep the cdn service alive and kicking, it work decently nice honestly, yes it required me to learn additional stuff, but it made me even more happier, price for sufficient level of bandwith it essentially allowed me to get very cheap rates for cdn service, along with additional cost optimisations at the edge by pre-allocating more cdn servers at peak usage to relay the stream once to the edge server and then broadcasting it from there to all local devices snappily and then bringing down the number of servers, once a major stream is over.

That takes care of cost reduction in encoding, bandwith and services like cdn.

There are a 110 otherways to reduce costs, but those are the primary ones you want to invest in, I excluded storage because you can already get cheap enough storage from a lot of managed providers like wasabi, backblaze, etc moreover streaming typically is less focused on long term storage so short term storage cost optimisation should be last resort, using reliable storage is a better idea.

Here’s an additional talk by mike solomon (youtube engineering) on scalability from 12 yrs ago [5] also the written blog version of it is here [6], a lot of it is still relevant, especially for young startups because bigtech youtube scale decisions are often not rational for young startups who have 1-2 years runway and need to make the most out of vc money or heck even bootstrapped haha (I was bootstrapped so price was a big deal for me, hence had to do a lot of stuff custom).

While making decisions always make sure to ask yourself at each step, “is this move relevant for my business” at youtube scale where their bandwith costs are in billions, hiring a $30 million hardware acceleration team makes sense to them, it does not to your startup, always take tips and hints from large behemoths like youtube, instagram, etc who’s devs love showing how they do a lot of things in talks available across internet but never forget to ask yourself the critical question of if its relevant to me.

A lot of the optimisations i did like custom cdn, managing my own storage, algorithms to allocate edge servers to reduce central load while boosting reliability, low latency and also reducing costs, does require very enthusiastic developers who love to learn things and are decently competent about it too. Each optimisation might give you 5-7% boost, some big ones will give you 200-500% boosts, but even those small changes add up to a big cost reduction overtime, if you get a big bill initially for your streaming service, dont get disheartened, allocate a team that specifically focuses on this and has deep tech knowledge doing 7%-10% optimisation each month across parts of the stack, and compound interest will help you move mountains.

Good luck to everyone here who are working on their streaming startups !

[1](https://www.semianalysis.com/p/google-new-custom-silicon-rep...)
[5](https://www.youtube.com/watch?v=G-lGCC4KKok)
[6](https://highscalability.com/7-years-of-youtube-scalability-l...)