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YouTube is experimenting with server-side ads
(lemmy.world)
The phenomenon of online platforms gradually degrading the quality of their services, often by promoting advertisements and sponsored content, in order to increase profits. (Cory Doctorow, 2022, extracted from Wikitionary) source
We discuss how predatory big tech platforms live and die by luring people in and then decaying for profit.
We also discuss how naturally open technologies like the Fediverse can be susceptible to corporate takeovers, rugpulls and subsequent enshittification.
Creation of a derivative work without author's consent solely for the purpose of monetisation - sounds legally dubious to me as you couldn't claim fair use.
You think Google didn't already think of that? From Youtube's ToS:
Displaying ads on or within - definitely
Modifying content and distributing the modified content? That's a trickier one.
It really isn't