This isn't comparable, because the base product is free. We're talking about paying an upfront fee for a premium product (like $2k for a phone) and then being shown ads. Youtube would be a vastly different product if everyone had to pay a one time $2k to use it (and then purchase premium to unlock ad-free). It's also noticeable that a lot of the "premium" media services go from being ad-free to ad-light... so we're back to cable... but that's a different discussion.
It's not very popular because you can remove ALL ads from youtube using a free browser extension