SSAI (server side ad insertion) is not uncommon for premium streaming video; Twitch and Hulu have had the technology in use for years. It's also practically just a checkbox option to enable the feature for all major ad serving tech platforms, including Google's DoubleClick.
They're not using it simply because it increases server and bandwidth costs. YouTube is still positioned as part of Google's "moat" by driving down video ad price so no one else can build an ad empire off video instead of being a profit generating division on its own.
They're not using it simply because it increases server and bandwidth costs. YouTube is still positioned as part of Google's "moat" by driving down video ad price so no one else can build an ad empire off video instead of being a profit generating division on its own.