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Inside the 'arms race' between YouTube and ad blockers
(www.engadget.com)
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Yeah that is unfortunate. They will probably never fully replace Youtube until they change drastically. They also serve a niche of interests only. It happens to align with my interests really well but it's definitely not for everyone.
I don't think they really have a goal of replacing youtube. I think the end goal is becoming an old school style media production organization, one that is collectively owned and bridges the Gap between social media and Hollywood.