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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.

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>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.

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