Could you reference what part of the ToS they're in violation of? I've got a site that does similar and when I had a look through I couldn't find anything that might put me in hot water
Is that the correct section? When I click on that, there is no section 5 E, only A, B, C and D. The heading on section 5 here is "5. Your Use of Content".
Edit: It seems to be allowed here. Section 4 E ii, note the double negative in 4 E:
4. General Use of the Service—Permissions and Restrictions
E. Prohibited commercial uses do not include:
* showing YouTube videos through the Embeddable Player on an ad-enabled blog or website, subject to the advertising restrictions set forth above in Section 4.D
Fascinating, thank you. I get completely different terms and conditions when I click on the same link - it includes the text you posted under section 4 D instead, but then adds a clause E specifically allowing use of the Embeddable Player on sites with ads:
A good way to get around that, and monetize the site would maybe be simply throw up some optin forms/subscribe mechanisms. Build a mailing list, then advertise via newsletter. That'd probably be how I'd monetize the site. That way there'd be no ads on-site, but it could still be commercialized via email.