1. That kinda already happens to a degree. A significant part of the youtube audience is outside of US & Europe and so those users are worth less to advertisers

1. That kinda already happens to a degree. A significant part of the youtube audience is outside of US & Europe and so those users are worth less to advertisers because advertising budgets are somewhat proportional to the population's disposable income. However youtube still has the same cost whether they're serving a user who advertisers would pay a lot for or a user where advertisers won't pay a lot for. 2. That's just making the experience worse for the people who do watch ads. Imagine it's a restaurant and you're raising the price so half the people can eat for free (this way everybody stays happy).