First, individually targeted advertisement should be illegal. Instead of trying to figure out who I am and serving me ads based on that, they should only be able to look at server side facts. What is the video? This is how television and radio ads have worked for ages. You have a video about SomePopBand, you advertise concert tickets. You have a video about bikes, you advertise bike stuff. You don't know who I am. Suddenly, the motivation for most of the privacy invading, stalking, nonsense is gutted.

Some people would still block those static ads. If they showed some restraint, I think more people would accept them. But that's a sad joke- no profit driven org is going to show restraint.

Secondly, if they can't ethically run the business at a profit, the business probably doesn't deserve to exist. That or it's a loss leader to get people into the ecosystem.