"Most of that revenue comes from advertising, but an increasing amount of money flows in from YouTube's $14-per-month subscription plan, YouTube Premium. YouTube Premium's primary perk is the lack of ads. You also get YouTube Music Premium, Picture-in-Picture mode, playback with the screen off, and more. And yet, the concept of paying for YouTube may seem baffling to many, not only due to Premium's considerable cost and questionable value, but also because anyone can still, technically, enjoy YouTube without paying a dime."
"Like many other things on the internet, YouTube isn't exactly free. Sure, you don't pay with your money, but you do have to watch an ad or two - that is, to sacrifice some time and attention. In the age we live in, these assets are more valuable than ever. The numbers will vary from person to person and from country to country, but let's assume that, on average, YouTube serves three minutes of ads per one hour of YouTube content."
YouTube generates most revenue from ads while increasing income from a $14-per-month Premium subscription. Premium removes ads and adds YouTube Music Premium, picture-in-picture, background playback, and other features. Paying removes time lost to ads; assuming three minutes of ads per hour, two hours daily equals about three hours per month spent watching ads. For regular viewers who spend significant time on the platform, Premium's ad-free experience recoups time and reduces repetitive advertising. Premium also clears ads from YouTube Kids, improving the viewing experience for children and caregivers; value depends on individual viewing habits.
Read at Android Police
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