Creator Economy

How YouTube’s Enshitification Works (And How the Platform Really Makes Money)

A friend-to-friend explanation of ads, creators, users, and why everything slowly feels worse

JD

Founder, Havocmedia

6 min read

Let me explain this casually, because once you see it, you can’t unsee it. YouTube didn’t become annoying overnight. It followed a very predictable pattern that almost every big platform follows once it becomes dominant.

People call this enshitification, but all it really means is this: first the platform is nice to users, then it’s nice to creators, and finally it’s nice only to itself.

Phase 1: Be Amazing for Users

In the early days, YouTube was magical. Fewer ads, more organic recommendations, and content that actually felt personal. The goal was simple: get as many people addicted as possible.

At this stage, YouTube doesn’t care about money much. Growth matters more. Habit matters more. Once users start opening YouTube by default, the trap is set.

Phase 2: Be Generous to Creators

Once users are locked in, YouTube shifts focus to creators. Better monetization, better reach, better analytics. This is when people quit jobs, build channels, and go all-in.

Creators become dependent. Their income, audience, and identity start living on the platform. Leaving becomes risky.

Phase 3: Turn the Screws Slowly

This is where things get sneaky. Ads slowly increase. Mid-rolls become more frequent. CPMs fluctuate without clear explanations. Reach becomes unpredictable.

Nothing breaks suddenly. Everything just becomes slightly worse every year.

Why Ads Are the Real Control Lever

Ads are YouTube’s main weapon. They decide how many ads run, where they appear, and who sees them. Creators don’t control this, even though it affects their audience directly.

YouTube can increase ad load to make more money without paying creators proportionally more. Users get annoyed, creators get blamed, and YouTube stays invisible.

Why YouTube Pushes Premium So Hard

Here’s the smart part. YouTube makes the free experience worse so Premium feels reasonable. More ads create pain. Premium removes that pain.

It’s not about ads alone. It’s about controlling both sides: annoy users, then charge them for relief.

Creators Are Trapped in the Middle

Creators get squeezed from both ends. Viewers complain about ads. Revenue becomes unstable. Algorithm changes feel random.

But creators can’t easily leave. Their audience is here. Their income is here. That dependency is exactly what gives YouTube power.

Why YouTube Still Wins

Despite everything, YouTube keeps winning because there’s no real alternative at the same scale. Video hosting is expensive. Discovery is hard. Audiences are lazy.

As long as creators and viewers stay, YouTube can keep pushing boundaries slowly.

This Isn’t Evil, It’s Structural

The important thing to understand is this isn’t personal. It’s not YouTube being evil. It’s YouTube being a mature platform under shareholder pressure.

Once growth slows, extraction begins. That’s the rule.

Final Reality Check

YouTube will keep adding ads, tightening control, and optimizing revenue. Creators will complain. Users will complain. And most people will still stay.

Understanding this helps you stop taking it personally. The platform isn’t broken. It’s doing exactly what it was designed to do.

How YouTube’s Enshitification Works (And How the Platform Really Makes Money) | Havocmedia