Yes it makes YouTube free of all ads. Another nice feature is background audio continues to play when youre out of the app. Best £12 month I spend. It’s £15 if you pay via the app so it’s better to subscribe when logged in to YouTube.com
It used to do that free.
Imagine running a company where almost the entire product line is given to the company free.
I use most services through their web interface, because I’d rather not use their apps. Though many services such as Instagram stopped making that possible so those I have no choice.