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It's not even clear that youtube-dl vs watching in the browser is any different from watching on tv vs using your vcr to record which has long been legal.

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In this case, it "steals" the ad revenue that the copyright tries to protect, no? Or am I thinking about this incorrectly?

This is an argument copyright owners tried to argue with VCR and later TiVo, as it lets them skip out on the ads.

Nobody can steal their own attention

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