Correct! It happened by offering a completely free service with no advertising, in order to become the dominant player and eliminate all the competition, some of which was trying to use more sustainable business models. The idea that YouTube should be free also didn’t happen magically, it was (and still is) intentionally fostered.
YouTube is free. If you don’t mind ads.
Lots of competitors have tried to use both paid accounts and ad-funding. What competitor I might prefer is irrelevant here, but there are plenty of them, just Google YouTube competitors. Vimeo is a good example of a site with high quality content and a more sustainable business model that tried for a while and was unable to broach the same market. YouTube so far surpassed everyone by offering videos without ads until more recently, in order to gain market share. The mindset you’re currently arguing against was established and curated and encouraged by YouTube, and they’re still hoping you hang on to it while they keep cranking up the amount of advertising and trying to normalize the bogus idea that avoiding ads is somehow bad. They do not have to offer an ad-funded business model, so if they don’t like the cat-and-mouse adblocker game, they can switch to paid accounts only.
It’s perfectly fine to block ads, because it’s perfectly fine to ignore ads we didn’t ask for. You can fast-forward or turn the volume down manually, just like you can write software to automate it. As a society, we wouldn’t have it any other way. We’ve had this same debate over VHS and DVD warnings & trailers, over TV and cable ads, over radio ads, and over general internet website ads. It will never change because advertisers are not allowed to force us to watch ads, as much as they’d like to.
In any case, if they make the choice to live off advertising, it’s their problem. They are not owed a business model.
YouTube has the right to offer only paying accounts, and stop serving free videos. They are choosing not to exercise that option. In fact, they chose to monopolize video streaming by initially offering free videos with no ads. Demanding ad viewing time is a recent change to their business model.
Consumers also have the right to pay for YouTube, or to not watch YouTube, but when YouTube chooses to serve “free” videos with ads that are annoying and waste time, as long as there are easy technical options for removing the ads, the temptation is pretty high. There is no law that you must watch ads, not on YouTube, not on TV, not for billboards, not on the internet. And basically nobody wants to waste time watching ads. This is why it’s wrong to call it “scamming”.
BTW I’m perfectly fine with the idea of an ad-funded business model for free services. I’m only objecting to your framing that avoiding ads when they can puts consumers in the wrong. YouTube’s funding is YouTube’s business, and they are free to fight against ad-blockers, but please don’t be a shill or vilify people for doing the obvious and legal thing. YouTube wants you to spout this crap because Google and advertisers would love it if there was public support for making ad-watching legally mandatory, and that would be a nightmare dystopian future we don’t want.