It’s a fair point. The honest answer might be that with current technology there is simply no way to make Youtube profitable. If Google can’t pull this off I don’t think anyone can. In which case we will see a slow, but profitable death for Youtube as they make increasingly user-hostile moves, like raising prices, increasing ads, and eventually becoming increasing aggressive about deleting rarely watched videos. This will kill their user base over time of course, but they are still sitting on a massive treasure trove of content. The one thing in their favor is that storing and transmitting data gets cheaper every year. Maybe that’s what they’re holding out for.