IS THE POINTOF THIS SETUP THAT

1. YT DOESNT GET TRAFFIC

2. YOU DONT NEED A BROWSER TO PLAY CONTENT

IS THAT CORRECT?

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They get "traffic" in the sense that you're still streaming / downloading from their servers, but you don't see their ads and they don't get revenue. But this is essentially right, YT doesn't get revenue and you don't need a browser.