A competitor to YouTube needs to support paying the creators not demand content for free.
No one demanded anything! I'm not certain that the firehose of "content" that youtube is creating is all that valuable to humanity, and I won't subject myself to ads to support it's existence.
YouTube's competitive advantage is their ability to pay video makers, not their video playback tech. And to make a competitor that has any kind of traction, this problem needs to be solved in a more reasonable way than "I'll somehow find a way to pay someone maybe".