Earlier quoted context omitted.
> Not a great regulatory move, in my opinion. Why?
Second order effects. Many advertisers may avoid advertising or lower their ad budgets. This means the tech platform makes less revenue. This means the platform and the video creator both make less revenue. This means less videos get created. All of these happen at the population level. I hate ads, but regulations that are for things that aren't public health (including mental health), anti-monopolization, etc. are p…
At best, it's as you said, the platform and creator make less money (Youtube gives 55% of ad revenue to the creator). This would naturally lead to less content eventually.
At worst, video content becomes unsustainable without a subscription.