About the operating cost, I feel like it is a matter of perspective as well.

When someone runs their own Plex server for example, they can easily justify it as one-time costs, they take responsibility for certain things, certain costs are “indirect” like power/bandwidth, and they do not see the value of their own time.

But if you wanted to do something similar for a larger user base, now the users see one big number that includes the hours you spend, “infrequent” hardware failures becoming a weekly occurrence, and you now taking on risks like copyright.

I would be willing to bet that many services are cheaper to rent than self host if you include all the hidden costs and time and other resources spent.

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Exactly! Plex eats a few cores just idling with a large content base.

Like I'm not even making a living of my gear, but I have over 80 hard drives that I have to monitor across 10 machines. 50 cooling fans, 30 power supplies, 3-4 switches. That's just the hardware which gives me far less problems than the software, which is usually configuration related lol.

There is a massive step between one machine I put my plex on, and Im hosting media for 1000s of nostr users to pull, with minimal downtime.

Like try taking down a whole machine without losing uptime XD

i think that it needs to be a big fast cache and many small archive repositories. renting a small one that only answers to you and to the caches you make arrangements with doesn't have to be 99% uptime, it can be down for a few minutes and only the very newest events probably won't already be cached.