YT Premium is a reaction to the infeasibility of subsidizing the extreme cost of hosting video streaming with ads alone. The scale of ads needed to cover hours of streaming video vs. ads to cover search results are magnitudes in difference, and people are more willing to pay to make those streaming ads disappear.
Even so, with a paid option, the vast majority of YT users still use Youtube w/o the Premium subscription.
YT Premium is a reaction to the infeasibility of subsidizing the extreme cost of hosting video streaming with ads alone. The scale of ads needed to cover hours of streaming video vs. ads to cover search results are magnitudes in difference, and people are more willing to pay to make those streaming ads disappear.
Even so, with a paid option, the vast majority of YT users still use Youtube w/o the Premium subscription.