Netflix charges a monthly price. They could have an open YouTube-like service (no subscription required) which adds value to their offering, and tries to bring people into a paying Netflix subscription.

It's not just the ads that are the problem with YouTube. It's also the way they can just demonetize anything that doesn't please advertisers, and the way their recommendation algorithm works. They don't even show me a lot of the videos from people I subscribed to on the app's homepage. Wtf?