People pay for Amazon, Hulu, HBO GO, Netflix, who knows what else. Why not youtube? But they will mostly pay for Superman or a Zombine movie by George Romero. Probably not so much for micro budget indie productions. I think the best chance for revenue for that sort of fare is still advertisement. Someone will pay 30 seconds of time to watch an ad for unknown productions, but probably not $1.99.
YouTube is owned by Google, so for any indie filmmaker this is a good thing.
If it's true what they say that there are more Android devices on the market than Apple devices, and that Google Play will grow bigger than iTunes, there are tons of advantages to this.
Right now I'm selling my film on Vimeo, and it's not going well at all. No one outside the filmmaking community has heard of Vimeo, so they don't have an account and don't go there to watch movies. They don't have a Vimeo app on their devices.
Everybody's got an Amazon account, and everyone's got a YouTube account, so this is great.
I have to say I was impressed with the HD quality of this service, it looked really good. The idea of showing you a preview sample for free also works for me.