Certainly Alphabet/Google wouldn't let it be done. I think they are just waiting to unveil their tv long play. Youtube is in some way only the technology to serve the next phase of the strategy.
In its current version, it can't compete in the long run without getting serious about producing content (or having stronger production partners). Now other players can swoop in offer competing deals to their content makers. YouTube Red is not a serious contender - in fact I think it is just a stopgap to get their toe in the space. I mean, Netflix has the money to make 40 features a year - they don't know what to do with all their cash. YouTube / Google isn't to the point where they would have any clue what to do with a production budget of that size. However, if they bought/merged an entity with a company like CBS or Viacom, then immediately they are in the production business and can roll out a real subscription model.
That said, I think YouTube will split into two - with user-generated content remaining under the YouTube brand and subscription content being called something else. [been wrong before though
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