There are so many convoluted and contradictory statements saying YouTube isn’t on the newest version of AppleTV or It is but very janky. So does the regular YouTube app work on the newest version of AppleTV and AppleTVOS with the YTPremium benefits??
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Yes.
Youtube most certainly is (as is Alphabet’s cable TV service called Youtube TV). I use it regularly to watch basketball highlights. Can’t speak to premium benefits. I get ads, so I assume if you had premium you wouldn’t see ads.