What DRM-free Youtube videos? Youtube uses DRM-enabled flash player and locks down the ability of people to copy videos.

Besides Youtube is a free service, that everyone basically assumes will continuously be there. You're bringing up non-related factors.

YouTube DL works from the command-line. YouTube videos are not DRM-encumbered. They are just harder to get because they can no longer be requested by a simple HTTP call.

http://rg3.github.com/youtube-dl/

I don't believe that someone would cancel Netflix because they happened to have ripped all of the things they are interested in. The value of Netflix is accessing an enormous library, vastly bigger than you could store (changing all the time!) and watching an item that you feel like watching at this time. A Netflix subscriber can't exactly predict every single item they'll be interested in until the end of time, rip them, then cancel.

Even if there were a few people that did this, they would make up an incredibly tiny proportion of paying users, and they'd likely be akin to the digital hoarders that have TB of movies downloaded.

>I don't see YouTube piracy as a big world problem.

That's because YouTube content can be trivially shared with other people.

Stop the sharing and pretty sure you would start to see piracy.