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The old business model could not last forever… and even if it could it was not good for anyone.
Think about it
Hosting videos is expensive, someone has to pay for it. It was mostly paid by ads. Ads which many (most people) would block and many people would not ever click even when not blocked. But it still made money… The money come only from ads which 1) where not blocked 2) where at least clicked. The business relied on that.
So YT relied on ads targeting people who did not know how to block ads and people easy to manipulate by the ads (eager to buy whatever they are trying to sell). Probably not the brightest. Or just easy to be taken advantage of. So the incentive would be to promote content for those people. Not good content, not true content, just content that makes ads viewed and clicked.
People using ad-blocks were still affected by those who do not. And whole site was optimized for advertises not viewers or content creators. And that is bad.
I am all in favour of any direct form of payments instead of ads powering the internet. Sites get very little money for each view anyway – so the prices for users should also be quite small.
Unfortunately as long as ads are supposed to be normal part of internet, they may get forced even onto paying customers. We need regulations.
I wouldn't mind paying a little bit of money every month to get YouTube ad free. However, it costs €12 a month. That's a lot of money if you only care about getting rid of ads. I personally don't need the other features (downloading videos, background play and YouTube music). If they added a 5 to 7 euro a month tier through which you could get rid of ads then that would be much more interesting to me. Now I just feel like I should keep looking for ways around their pop up shenanigans.
That's really expensive, I pay around €7 for the family plan and I live in the EU.
The family plan is $30/mo here.