Prepin
Log in

Calculate the additional cost of storing videos uploaded to YouTube over the course of a year.

Approach / Explanation

This inquiry exemplifies a typical Fermi estimation in the technology sector. Named after physicist Enrico Fermi, such questions typically require estimations in areas where comprehensive or complete information is either lacking or unavailable. In this instance, you are tasked with estimating the additional cost of storing videos uploaded to YouTube over the course of a year. This question is multifaceted, incorporating two primary elements: a technical aspect (video storage) and a financial aspect (cost estimation). Each of these components encompasses various sub-issues, including the frequency of video uploads on YouTube, the average size of online videos, YouTube's storage methods, and Google's financial structure. To excel, adhere to the following guidelines: Gain a thorough understanding of the relevant concepts . Here, you should familiarize yourself with YouTube users' uploading behaviors, online video storage technologies, and the financial frameworks of tech companies like Google. Organize your response effectively . Avoid rushing to provide figures. Dissect each component and base your estimates on sound reasoning or reputable data. Clearly articulate your reasoning and logic . Interviewers do not expect you to know the exact figures, but they want to observe how you approach and resolve complex issues systematically.

Suggested Answer

Let’s begin by estimating the daily data upload to YouTube. Public data indicates that 500 hours of video are uploaded every minute, totaling 720,000 hours each day. Since an HD video requires about 0.9GB per hour, this means YouTube receives roughly 648,000GB, or about 648TB, of data each day. Regarding the costs associated with storing these videos, it is assumed that Google utilizes its internal services for hosting YouTube content. Based on Google Cloud Services pricing, storing 1TB in a regional location costs $0.02 per GB. To calculate the yearly expense: The daily cost would be: 648TB * $0.02 = $12,960 The annual cost (for 365 days) would be: $12,960 * 365 = $4,730,400 Therefore, the additional cost of storing videos uploaded to YouTube over a year could be around $4.73 million. It is widely recognized that Google has invested significantly in data compression and possesses considerable negotiating power with storage hardware suppliers. As a result, the actual costs may be considerably lower.

Alternative Answer

To calculate the additional cost of storing videos uploaded to YouTube over the course of a year, let's start by establishing some key figures. YouTube reports that 500 hours of video are uploaded every minute. Assuming an average video quality that requires around 0.75GB of storage per hour, this results in approximately 540,000GB, or 540TB, each day. Google relies on its own data centers for storage, so their expenses are primarily tied to the upkeep of these facilities. Let's estimate that they can store 1TB of data for $0.015 per GB, which is lower than their public cloud storage rates due to economies of scale and more favorable supplier negotiations: The daily cost would be approximately 540TB * $0.015 = $8,100 On an annual basis, this amounts to roughly $8,100 * 365 = $2,956,500 Thus, the estimated additional cost of storing videos uploaded to YouTube over a year would be around $2.96 million. However, this is a rough estimate, and the actual costs could be considerably lower when taking into account factors such as data compression, deduplication, and more efficient storage techniques.

Question Details

Difficulty & Category

Medium
estimation

Companies

Google

Product

For CandidatesFor RecruitersCompaniesBrowse JobsInterview QuestionsDeep ProfileSkill AssessmentOpportunity Matching
Prepin.ai

© 2026 Prepin LLC · Philadelphia, PA · All rights reserved.