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If we go this route, they are just going to embed the ads into the video itself. Clearly the solution is to create an alternative to Youtube. This war is not going to bode well to either side.

just going to embed the ads into the video itself.

This has already happened, and a counter measure for this first iteration has already been developed - SponserBlock: https://smarttubenext.com/sponsorblock/

Next up, embedded floating ads over the watchable desired content.

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