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> If I see an ad I just close YT for the rest of the day.

I'm sure that's exactly the behavior YT wants here.

Their whole business is based on retention, so I don’t think that’s true.

What is the value of retention if you can't monetize it!?!

For network effects it doesn't matter if you have 99% of the audience or 90% (assuming only 10% will leave because of anti ad blocker).