Their problem in the long tail of pirates, scammers, and amateurs who impose costs on the platform but don’t generate revenue. That’s a business model issue that should concern Alphabet. It’s not an excuse for making artists pay for YouTube’s content-related costs out of their own pockets to support piracy.
At a minimum, Facebook needs to reorganize the company in such a way that a single CEO can exercise effective control over its major pieces. An Alphabet-like reshuffling with a new level of management would at least signal seriousness about improvement.