YouTube first spoke about pause ads last year when it started trialing them in select regions. At the time, the company said that when you pause a video, it will shrink, and an ad will appear next to it.
“In Q1, we saw strong traction from the introduction of a pause ads pilot on connected TVs, a new non-interruptive ad format that appears when users pause their organic content,” Schindler noted. He went on to share that YouTube’s pause ads are “driving strong brand lift results” and “are commanding premium pricing from advertisers.”
Schindler didn’t share any timelines for when pause ads will start appearing on YouTube, but we know they’ll first roll out on smart TVs. The nature of these ads, including their duration, skippability, and more is still unclear. We also don’t know if Google plans to introduce these ads on YouTube’s mobile apps.
Those content restrictions aren't because youtube itself has any moral objections, it's a combination of what the law allows (see COPA related fines changing content rules) and what (most) big budget advertisers are willing to appear beside.
The previous "adpocalypse"s have shaped a large portion of youtube's content policies.
Any other platform hoping to take market share from youtube will have to deal with the same pressures if they expect to pay their bills once the VC money runs out.