Yes it does. I go to the page (ad), copy the URL, and youtube-dl.
More critically, Youtube relies on network effects and people using it. Part of the reason we share family videos, educational content, and other things is so it's, well, shared. For me, the reasons to use Youtube-dl are:
1) People in bandwidth-constrained settings. If I post my videos, and colleagues in some countries can't watch them, I'm going elsewhere.
2) Remixing. If I can't make collages of family videos, I'm going elsewhere.
Youtube can serve masters like me, where it's an effective platform for sharing videos I want people to watch, and where the goal is dissemination. It can serve masters like the RIAA and the MPAA, where the goal is monetization and control. It will have a hard time serving both.
I suspect if it tries, people like me will go to someone who caters to us. A YouYesYouNoNotTheRIAAYesYOUTube. If we do, I think there will be enough of a network to start to syphon people off, and eventually, cat videos and Aunt Alice will be on YYYNNTRYYT.com, while corporate video will be on DRMed Youtube.
Perhaps more importantly, the number of people using youtube-dl because it allows you to watch videos without ads almost certainly pales in comparison to the number of people just using adblockers. Youtube-dl makes you wait.
Downloaded videos often get remixed into other videos that generate ad revenue. Commentary, reaction videos and compilations are substantial parts of youtube.
How many people downloaded Shake It Off with youtube-dl vs. the people who watched it from the official YouTube app or stock Google Chrome? youtube-dl does not nearly threaten their revenue in any tangible way.
Yes, but is there any indication that they work against youtube-dl in some specific way? Adversarial actions like changing youtube to render youtube-dl non-functional?
A downloaded video doesn't generate ad revenue.