I see this ending with ads increasing ad infinitum. As more ads get added, the value of the free version will decrease and more users will be pushed to either stop using the site or pay for subscriptions. We should fast forward to that end game, where YouTube locks all the user-created content behind a paywall to monetize it for their own benefit like all internet platforms seem to be aiming to do.
I understand that YouTube costs money to run, but the monetization situation does not reflect that, and is thus totally backwards. The current model is that users pay for a “service” (YouTube) which has an expense for “content” (video creators). The content is what the users actually want; the situation should be that users pay the content creators, who pay YouTube something akin to rent. It is not fair that YouTube profits off of the value that content creators bring rather than just their infrastructure. It is akin to paying the owner of a building for access to the store.
Vimeo has exactly the business model you propose. Total data delivered to viewers is limited in all Vimeo plans, and you need to pay them extra if you want a viral video.
It's been about a while, and so far hasn't gained a large userbase of viewers - at least in part because content creators don't want to pay for random non-paying people to watch their videos.
I understand that YouTube costs money to run, but the monetization situation does not reflect that, and is thus totally backwards. The current model is that users pay for a “service” (YouTube) which has an expense for “content” (video creators). The content is what the users actually want; the situation should be that users pay the content creators, who pay YouTube something akin to rent. It is not fair that YouTube profits off of the value that content creators bring rather than just their infrastructure. It is akin to paying the owner of a building for access to the store.