YouTube Premium Isn’t Actually Ad Free

[00:00:00]A new proposed class action has hit Google stating that YouTube Premium is false advertising because they market adree, but you will still see sponsored segments in videos.

[00:00:12]Oh, specifically the bakedin ads that creators include. The lawsuit is citing other claims in YouTube's marketing such as no interruptions or most videos are adree in the case of premium light.

[00:00:26]H.

[00:00:29]>> So our discussion question is, do you think there's an argument to be made here for this class action? Because clearly Google is not serving the ads and not profiting from them, but they are also representing the service that they are providing as an experience that people are not really having. Like I just I with my built-in ad block like I'm aware of, you know, if I'm watching oversimplified or whatever, I'm aware that there's like a giant twominut ad read in the middle of it or whatever and I'm like tap tap tap tap tap tap tap tap tap and and like I don't um like it doesn't bother me, but also if you don't have bad ad block in your brain um yeah, I can see I can see encountering that and going, "Well, what am I even paying for then?"

[00:01:26]>> Well, YouTube Premium has built-in ad skip.

[00:01:29]>> Yeah, but I don't think >> and also I think the precedent here is not that. And the re the argument that I would make uh is that like on on all ad free platforms that I know of, there's still um what is it called?

[00:01:47]product placement advertisements and lots of other forms of advertisements.

[00:01:52]Just because it's not full screen rolls doesn't mean there isn't other forms of advertisements. So that has been true for a very long time. Um there's also been native integrations on other platforms that are adree for a very long time. Um or not non-native integrations I guess. I don't know, I'm losing the terminology, but when when the hosts talk about a thing, um, instead of it being like a cutaway to an ad, that has been true on other platforms for a while. Um, >> like a plug, you mean?

[00:02:20]>> Yeah. Yeah, exactly. And yeah, I don't know. I I I as a very long-term premium user myself, ad skip, bro. Like, what's the problem?

[00:02:35]Yeah, because it does the way that YouTube does that is they they put up a prompt to skip frequently skipped chunks of the video, right?

[00:02:45]>> Yeah. which generally corresponds to >> almost always is because the way to do it before that was if you looked at the timeline of the video, it gave you this like waveform and the waveform was essentially a retention graph and you would look at the dip and then this like massive surge and the massive surge was because people would click on that. So that was just the old form of it was you would just very clearly see where the ad ended by looking at the waveform of retention and then they added as people are pointing out a little white dot >> y >> which is the end of the frequently skipped area. So you can just click on it on the timeline or there's also a button that shows up in the corner that says jump forward or jump whatever I don't know uh and it'll just skip it for you. So, like I don't know. I understand the argument that the class action is making is that the ad is there at all.

[00:03:40]Not that it isn't easily skippable, but I do think there's quite a bit of precedent for it being the the type of thing that they're talking about is platform inserted unskippable like pre-rolls, mid rolls, whatever.

[00:03:57]not stuff that's baked into the cont content naturally by the user that generated that content. There isn't platform ads.

[00:04:05]>> I'm going to both sides this one. I like if YouTube says in their marketing no interruptions, right? I I could see that both ways. On the one hand, as a viewer who's, you know, getting a twominut read for oh man, I'm trying to think of what's a what's a company that advertises on YouTube a bunch. Uh, honey.

[00:04:27]Thanks for that.

[00:04:29]>> Sure. Let's go with honey. Um, you know, I'm getting this this long read about, you know, honey or whatever. I have been I've been interrupted. But on the flip side, YouTube has delivered the content that that creator uploaded in its entirety to you with no interruptions.

[00:04:48]How is it how is it their problem or even their role to decide what to serve you and what not to serve you?

[00:04:55]>> I think an interruption in the perspective of YouTube is them interrupting the video that you are watching by inserting an ad.

[00:05:08]They're not doing that technically.

[00:05:09]>> They're not >> the video that you are watching is just becoming an ad that is very easily skippable.

[00:05:15]>> Yep. Um, so I I don't think the interruption thing I I think a lot of it depends on like where are you placing the perspective in this conversation.

[00:05:25]Um, >> yeah.

[00:05:27]>> I mean, flow plane isn't adree then cuz you know WAN show has sponsors and product placements. Got to get that dough for for me. Yeah, >> exactly. Just like I mean I could tell you all about true spec cables on ltstore.com.

[00:05:41]>> That's on full now.

[00:05:42]>> They they're super flexible. uh they support, you know, very high power and data rates and are designed to be durable and and and UV resistant if you like using them in your car, for instance. Uh trspec cables, ltstore.com, right? Like should should YouTube cut that out? If somebody pays for premium on YouTube, should they not see that?

[00:06:07]And this is actually a really good question from Sydney Brokit over in float plane chat. If the entire video is a sponsored video, should YouTube not serve it then to premium viewers?

[00:06:20]What is it? What exactly is it that they're asking for? Like what should Google do?

[00:06:29]>> You know, this is interesting. I don't know if we say anywhere that float plane is adree actually. No, we don't.

[00:06:35]>> It doesn't tend to have ads. Like there's usually a float plane cut. Not usually. It's always I think there's a full plane cut that doesn't have the sponsor spot in it to the point where some people have actually complained because they think the more creative ones >> uh they actually want to see it which is kind of funny. Um but I'm looking through and you know I might be wrong.

[00:06:57]Someone might have it somewhere.

[00:06:59]>> Well, we leave it up to the creator.

[00:07:01]>> Yeah, because the platform wouldn't say it. Yeah, because we leave it up to the creator like you said. But then I don't think the Linus Tech Tips plans actually say, "Hey, there's no ads." Even though we we do cut them out.

[00:07:12]>> Um >> well, we've tended towards a a promise less, deliver more approach because we ran into trouble in the earlier days sometimes when we would promise more and then we someone would make a mistake or it would not be viable for some reason or another. Uh or we would the business reality would change and we'd have to backtrack. And it's a lot easier for us to just underpromise and overd deliver as best we can um versus like promising the world and then it up sometimes.

[00:07:45]>> Yeah.

[00:07:46]>> Uh it's >> unless it's full sponsor videos like AMD upgrades. Yeah, that might be why we just don't use the verbiage.

[00:07:51]>> And this is really interesting just seeing now obviously there's a bit of a sampling bias here because this is coming from people who subscribe on float plane which is like a very support the creators platform. like you you get extras and well actually we've got some really good extras this week. So, we'll talk about that a little bit later, but you get extras, but other than that, it's just like throwing coffee money at us to help us support the team and and build the platform. Um, but but seeing the conversation in here, like, man, this this blows. This is a dumb lawsuit.

[00:08:22]This are they trying to, you know, destroy creators. It's like, way to go.

[00:08:28]This is dumb. YouTube doesn't create sponsor spots. This is basically just saying, you know, screw the creators, but I don't know. Like, it's uh it's really interesting seeing the the hostility toward this this lawsuit when I mean, you must remember this, Luke, from back in the garage days. How how angry people in the community would be that we had the audacity to try to make a living at this.

[00:08:56]>> Literally any form of advertisement whatsoever or the video being monetized at all. Yeah. And >> if YouTube monetization was on because you used to be able to just turn it off and there would actually be no ads, which was psychotic that that was possible on the platform. I just want to say [laughter] that was crazy. I don't know how they ever thought that was going to work, but whatever. Sounds good. Thanks, Google. Uh, yeah, >> but yeah, Mr. Sister makes a really good point. Like as much as I am obviously coming at this from a procreator standpoint, I've got three children. Oh, he's not there to ding me. Whatever. He said it. He said, "Oh, whoops. I pressed a button. Good lord. What am I doing?"

[00:09:37]Um, so yeah, I'm coming at it from a procreator like perspective. Um, but I actually agree with Mr. Sister here.

[00:09:45]This feels like when cell phone companies advertise unlimited data. It's like, yeah, it's not actually unlimited.

[00:09:53]And everyone understands what they mean by that. And there's an argument to be made that it's unlimited. But like no one forced them to say that. Nobody forced YouTube to say no interruptions.

[00:10:02]They could have just they could have just said it in a because by the time YouTube Premium existed, so did invide sponsor reads. So it's not like this was some new thing that came about.

[00:10:16]>> This is a perspective conversation. And I understand the argument you're making, but >> from their perspective, there is no interruption. No, I get it. I see both sides 100%.

[00:10:25]>> But I don't think the unlimited data thing is to me the unlimited data thing feels more egregious. I understand the comparison you're making.

[00:10:34]>> In a lot of cases, it's unlimited. It's just at a it throttles to such a speed that effectively you could figure out how much data it is because it would be the maximum data rate over the amount of time.

[00:10:45]>> They just actually don't interrupt videos. Like actually, >> it's not that it like it's not that they don't interrupt >> 80 videos a week and then they'll start interrupting them a little bit. Like no, they just actually never interrupt videos.

[00:10:58]>> I get it.

[00:10:58]>> The the interruption is coming from the UGC on their platform.

[00:11:02]>> But they don't say they don't say we won't interrupt the video. They say no interruptions, which is a is a broader statement than they had to make. So he he's right that they didn't have to make such a broad sweeping statement. They could have said no YouTube ads and that would have been true. So I I totally I totally I can both sides this one pretty pretty comfortably. I could sit and argue with myself about this for the next 10 minutes >> pretty easily.

[00:11:35]>> Um to be clear, I don't think this lawsuit's going anywhere. Like I don't think you're going to be able to to to make this argument in court that YouTube is somehow liable for the user generated content that they are to your point not interrupting right >> like yeah like Google isn't so archangel of death hell of a name in full plane chat said no interruptions added to the creator's videos. Yeah they could add some like they could make it a longer qualifying sentence.

[00:12:02]>> Yeah. Uh to me I personally I think you know I don't think anyone actually thinks Red Bull gives you wings.

[00:12:12]>> I mean that was a problem though.

[00:12:15]>> Yeah. But like >> maybe we don't need to worry about that.

[00:12:18]>> Did someone get hurt or something?

[00:12:21]>> Hold on. What's the actual history? Cuz I don't know how much of that is just like urban legend gives you wings lawsuit. Here we go.

[00:12:30]Oh wow. AI overview. But hear me out. In 2014, Red Bull agreed to pay $13 million to settle a class action false advertising lawsuit >> filed by consumer Benjamin Kathther in 2013. The suit claimed the slogan Red Bull gives you wings and the drinks marketing misled customers about the beverages energy and performance benefits compared to standard caffeine sources.

[00:12:59]So, like [sighs] >> that's insane.

[00:13:06]>> They didn't admit any admit any fault.

[00:13:08]And this is one of those cases where yeah, the corporation should even if they settle, they should not have to admit any fault. But >> if Red Bull can get in trouble for Red Bull gives you wings, then I think YouTube might be maybe could be in more trouble than I thought here. Maybe.

[00:13:28]Well, I think the safest thing is to just never say anything.

[00:13:31]>> Well, I think the safest thing is for YouTube to say YouTube Premium gives you wings and then anyone stupid enough to believe it can go jump off a building.

[00:13:39][laughter] >> I like that.

[00:13:40]>> It solves itself. Really, if you think about it, >> I do think they could, you know, I think they could have more clarifying language. I just I I also worry about [snorts] like okay is every advertisement going to be a >> I don't have a bleet button here but a legal document at this point like >> uh I mean yeah I don't think anyone wants that like that's the thing that I think people got to ask themselves like do you want that like there's a there's a there's a balancing act here we don't want misleading advertising but we also don't want to read a 30page legal document just to understand what a product is there's got to There's got to be something in between.

[00:14:20]We got to make this happen.

[00:14:24]All right, why don't we jump into Oh, yes, Dan. He moved the mic toward himself, so he's preparing to say something.

[00:14:30]>> Dan, speak.

[00:14:32]>> Okay, that's a good point for flow plane chat. Why Why am I resisting this? And I think the Red Bull gives you wings thing is really stupid, but I also think that the Pepsi jet is legendary.

[00:14:44]I don't know.

[00:14:47]>> Feel free to unravel this one for us.

[00:14:49]>> Is it?

[00:14:50]>> I feel like I feel like it is different >> because in the Pepsi Jet thing, they they like they gave it a point amount that you would need to get to.

[00:15:01]>> Mhm.

[00:15:01]>> They were very specific and it was like commercial super specific. It was in there.

[00:15:06]>> I think it's different.

[00:15:08]>> Really?

[00:15:09]>> I think it's I think so.

[00:15:17]I mean, YouTube you Pepsi promised a jet and YouTube promised no interruptions.

[00:15:23]>> No interruptions.

[00:15:24]>> No interruptions.

[00:15:29]I could we you I think we really could both sides this one for like the rest of the show. Maybe maybe I'll just shut up and we'll move on.