Because they can run far riskier and less-vetted ads. They can also run as many of them as they want - the "target audience" doesn't really care if there's 1000 banner ads on a page. There's a reason much of malware is spread from porn sites.
For consumer facing video sites, they have to compete with YouTube on UX, which means much more stringent ad vetting, and far fewer ads. This likely tips the balance just enough that normal online video startups are not feasible without 3-4 years of runway.
I thought this was no longer the case
They already run a high functioning video network. They really just need a SFW frontend with alternate branding (and no adult videos).
[0]: https://vpnhub.com
Youtube still offers RSS and it's reliable and chronological unlike youtube's subscription feed algorithm.
The problem isn't in the content hosting industry, it is on the policy & legal side.
The issues we are seeing can be easily fixed by some simple common sense controls on what levels of certainty are required to take down a video and/or channel that scale with how established the channel is, including requiring escalating levels of human review.
With the "advertiser friendly" issue, the same approach can be taken, topped off with a monetize time prompt or form that allows them to assert how advertiser friendly the uploader understands the video to be (weighted by the history of how accurate their answers have been in the past).
These are such solved problems, that youtube really shouldn't be having them.
This is solved already, but there will always be false positives.
What isn't solved, and likely never will be, is copyright.
But it seems that the issue isn't due to content ID, but contractual issues.
It seems like an odd play, increase supply of ad slots while dealing with a demand decrease from random companies dropping ads during drama. They must have signed some kind of deal recently.
If they are trying to increase the ad slot supply expect actions against ad blockers to come next.
If I can't get data off bitchute easily using de facto standard tools (I get that I could use a bittorrent client, but that's beyond the point), I have little interest in putting data on it.
(I know you're not a developer, but this is a perfect use-case for forking and continuing.)
Microsoft has a YouTube like service but limits it to enterprise.
Since video hosting is such a resource intensive undertaking, I wonder why many free porn sites don't have outages and have no limit on uploads for free users - unlike YouTube competitors.