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Or: 4. Google accepts the risk they have to pay you out of pocket the amount you lost while you appealed their demonetization if you win.

That risk should feed into how sensitive their automated system is at automatically demonitizing things.

The only way Google cares enough to change this is if their demonetization practices cost them money when they get it wrong.

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It does cost them money when they get it wrong. It's not as if google makes money off the demonetized video, they only make money if the creator does. People act like YouTube wants to demonetize videos, of course they don't, they would monetize every single second of YouTube if the advertisers allowed them to do so.

>It does cost them money when they get it wrong.

Does it tho?

Google has the problem of too much advertising space vs too few advertising clients. Being able to significantly cut down the advertising space means they get better prices across the board.

Demonetizing any singular video (especially if suspect or borderline) is one time loss, long time profit.

Maybe they weigh the risk of creators leaving vs advertisers leaving. High profile creators haven't left yet. Advertisers have already bluffed a number of times and Google didn't call them on it.

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