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That's the point. Captive audience / monopoly on quality video content means they can increase reduce the creators cut on ad revenue, increase the frequency of ads (and the cost to advertisers) and still profit with a paid tier as people get sick of the ads.
I use YouTube a lot but I really want it to die.
Soul
NotThamesWater
The ads on youtube are getting out of hand, they are pushing towards getting premium to avoid it.