How about advertising without the tracking? Advertising not shown specifically to me because of any attributes Google thinks apply to me? Advertising limited to a 5s lead in at the start of the video (today, this video is sponsored by …) and a static banner hidden when going full-screen. Advertising held to high standards, and advertising which can be vetoed by the video's uploader. In short, ethical advertising.
Google can surely figure this out and still turn a profit on Youtube. Greed stops them from doing this.
Why? Surely knowing the content of the video gives them enough context to serve advertising relevant to the viewer without tracking.
At the very least they could guarentee that YouTube Premium tracking doesn't get used for profiling later. I think that would be a very acceptable solution but they don't offer it.
Both sound like good options to me. Split it up or turn it into a nonprofit. Although I suppose the former would man paying 15 bucks to each baby YouTube, so maybe not.
That’s the thing about modern capitalism. Making profit isn’t enough, the profit has to keep growing. So once the market is saturated, you either reduce perks, jack up prices, bundle new features to jack up prices (my GSuite bills doubled in ~3 years before I went in and adjusted the plan; the latest price hike “reflects the significant added AI value”), or find new ways to monetize the same users (ads, “partners”, etc.). It’s inevitable.