Seems like it should be a market inevitability. There are just so many things wrong with YouTube. The main obstacle is the bandwidth cost, and that's not an issue for any major tech company.
I think Facebook could actually properly compete with YouTube if they wanted, it's just that their insistence that you have to be logged in to access content makes it much less appealing as a platform, because you can't just link people to videos easily.
Netflix charges a monthly price. They could have an open YouTube-like service (no subscription required) which adds value to their offering, and tries to bring people into a paying Netflix subscription.
It's not just the ads that are the problem with YouTube. It's also the way they can just demonetize anything that doesn't please advertisers, and the way their recommendation algorithm works. They don't even show me a lot of the videos from people I subscribed to on the app's homepage. Wtf?
I think Facebook could actually properly compete with YouTube if they wanted, it's just that their insistence that you have to be logged in to access content makes it much less appealing as a platform, because you can't just link people to videos easily.