In 2022, Youtube was getting $14 ARPU for free users (from ads) and $120 ARPU for premium users. With premium users contributing so much more to their bottom line, one would think they would strive to keep those users subscribed, but instead YouTube started raising prices and even stopped honoring the grandfathered price points their long term subscribers (like myself) were at. I would have kept paying for my family subscription indefinitely at that price point - which is still several times higher than the revenue they would get from me as an ad-consuming customer - but they opted to not allow that, so they lost all the revenue they’d been getting from me entirely.

Youtube specific stats are hard to find, but Alphabet is one of the most profitable companies worldwide, with a profit of just under $80 billion in 2022, so your question is honestly irrelevant. The status quo would have been more than enough to keep the lights on. This isn’t about making ends meet; it’s about getting as much profit as they can.

Even so, the person you replied to didn’t say YouTube shouldn’t run ads or charge for a subscription. They were talking about themselves and their willingness to watch ads or subscribe.

And because enough people aren’t like that person or like me, YouTube is going to continue to grow their revenue and their user base - for now, at least.