Changes at YouTube - Phasing You out of Youtube (vid)
youtube.com
youtube.com
http://www.businessinsider.com/is-youtube-doomed-2009-4
They have a net loss of _half a billion dollars a year_. Even at Google that's not the kind of number you can ignore.
Basically, YouTube gives a ton of revenue to small video producers who are popular in niches, but doesn't earn any money from those guys because advertisers are too scared to put ads on user-generated content. So instead of changing advertiser behaviour (which would be really hard), they are instead trying to funnel users to content that can be easily monetized. It remains to be seen if this will work or just piss off their users and kill YouTube.
Repeating this ad infinitum doesn't make it true. A single report, from a single analyst, speculated that they may be losing that much.