I think if they had made it £4.99 per month all in then that would have been a good deal.
I guess they don't have faith that many people will sign up to it.
well no, they have to cover the loss in advertising revenue that they pay out to the creators.
clearly they aren't going to make it loss making.
For some reason YT seem to be obsessed with playing the victim while demonetising peoples videos blaming advertisers, yet have been very reluctant to roll out YT Red/Premium, then overcharging for it.
again, it can't be loss making, they are a business (the creators are a business too). they make money from ad revenue.
if the end-user doesn't want to watch ads then they either use an adblocker or pay the fee for the service that removes the ads but still compensates for the loss in ad revenue.
for some reason certain people seem to be obsessed with thinking that google owe them something for nothing. they don't. they are a business. if said people don't like their practices then use a different service.