Let’s face it. YouTube has complete dominance on the user generated streaming video market. It has no real competitors. The videos you find on the social media mostly comes from YouTube.
Hence, the site is using this to force creators to sign the deal that subscribes them to YouTube Red with all its terms and conditions, if they want their videos published. Otherwise, the videos will be marked private and no one will be able to find them.
The reason YouTube gives for this strict term is to prevent subscribers discovering that some videos are not available on YouTube Red.
Of course, from consumers’ perspective, US$9.99 per month is pretty reasonable considering all the content that you receive. It also comes with YouTube Music, which will come out ‘soon.’
However, for creators who depend primarily on ad revenue to survive, it’s hardly fair to force their hands this way. For now, publishers will have to make do until they have a better alternative to turn to.