The content hosted on Youtube cannot be 100% hosted legally. It is impossible to believe that you can find a full album of Pink Floyd hosted on Youtube and that’s a legal thing.
This is an extract from the support page of Google:
Videos removed or blocked due to YouTube’s contractual obligations
YouTube enters into agreements with certain music copyright owners to allow use of their sound recordings and musical compositions.
What is the bottom line here? Is Youtube big enough to be allowed to publish full albums of Pink Floyd? Or does Youtube pay a dime to Universal so they are allowed to publish the audio content?
My question is: If Youtube can go away Scot’s free with this, why can’t the fediverse? If we start to host massive video/audio content, what will happen to the fediverse?
Youtube’s got business deals with the recording studios, and those studios put their music on Youtube legally, and get a piece of the ad revenue.
Adding to this, Youtube rarely hands out high quality versions for recordings - so the low fi version on youtube is more like a demo. If you have expensive equipment, you will want to pay for a high quality version if you like the tune.