>But can't folks still create their own websites and upload their own content for cheap?

because of the network effect. Users end up flocking to the bigger platform and thus never even find out about the mon&pop store webpage with interesting content (not to mention the monetization is non-existent there).

They can use YouTube as a storefront window to reach the audience.

But it may be not completely prudent to use YouTube as the only place your videos are available. Through the same videos, it is possible to constantly advertise the other sources of one's videos.

The problem, of course, is monetization, or lack thereof outside YouTube.

> create their own websites and upload their own content for cheap? domain name, virtual server, upload?

If you become successful, this will lose you money. If you become successful on Youtube, you can gain money. That's all there is to it.

That's not true anymore. Video CDNs are cheap. As long as you can put ads in your videos, you should be profitable.

The real problem is getting traffic, YouTube is the monopolist in that area.