Get your facts straight.
The dev charged money for an app he spent the time and energy to create and maintain which had benefits and features the YouTube app did not/would not.
Your analogy is off-base.
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Google is, above all, an ad agency, so users must pay dearly and repeatedly to opt out of their ads.
First of all, I feel it’s important to state that I’m a big Apple fan and can’t really stand Google/Alphabet most of the time. You’re right about them being an ad agency above all else. But that’s their business model. I tend to avoid using most of their products.
Alphabet’s YouTube and the content creators on YouTube make money from ad revenue. It pays for the servers and keeps everything running and allows them to push out 4K60 video and other innovations that are mind boggling to someone from even five years ago. YouTube has the right to control access to their content however they see fit. Furthermore, they make additional revenue off of selling YouTube Red which offers these additional benefits. Can you really not see how Alphabet is losing money here?
This isn’t a question of whether or not they
can do this. They have the right as they own YouTube and control all access to it. What’s in question here is whether they
should do it. It is your opinion that they should not. But it’s not up to you, and if you don’t like it, then don’t use their service. If enough people stop using their service, then they will not be profitable and react accordingly. But if their service is valuable enough to people—despite all the limitations they artificially impose—AND they still don’t go elsewhere, then they’ve obviously created something of value and can charge and control access to it however they wish. That’s how capitalism works. It’s why Apple charges so much more for a Mac. Should Apple be forced to sell Macs for the same price as a flimsy PC? No. So YouTube—which let’s face it, is THE video site on the web—can charge a premium if people want special features because they’re a premium service.
Furthermore, if Apple really wanted to push the issue, they probably could. They have enormous sway with Google as most of Google’s revenue comes from iOS search results and being the default browser. Apple could implement APIs in such a way that if you want to play back video on iOS, then it all has to be routed through the same system and you can’t pick and choose a certain feature being disabled such as PIP. In fact, I think it creates a confusing user experience as it’s an inconsistent design pattern when videos playing back inside of apps only sometimes go into PIP when you close them.