Why charge by the minute? Why not charge by the GB, for instance?
There are several reasons why per-minute pricing is a better model.
- Output duration correlates more closely to our actual costs than GB. The input bitrate (which governs file size) doesn't actually play a huge factor in how long a video takes to encode. The output duration and resolution are the biggest factors, so we charge based on output duration (plus 2x for HD resolution videos).
- This aligns our incentives. If we charged per GB out, we would not have an incentive to compress your video well. If we increased output file sizes by 10%, we'd make 10% more money.
- This model makes charges predictable. If you choose constant quality encoding (which we recommend), you won't know how big your output file will be, and so you won't know how much a job will cost before sending it in.