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First Look: Loops, by Pixelfed
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The very first Youtube video is still up. Any serious competitor is going to need to offer that level of reliability with added benefits to woo users over.
have you considered that a platform for sharing short, vertical videos, developed by a single person, perhaps isn't trying to become a "serious competitor" for Youtube?
YouTube can't even keep up with the amount of 4k and 8k video being fed into it.
what you're seeing with ads is them trying to reduce their burden.