If your watching one of your faves videos, they make money off the adds.
No, not directly. Youtube pays your faves for video views regardless if you watch adds or not.
It's Youtube who gets money if you watch the adds. Basically supporting the business
You can't skip ads on Hulu and it's the absolute pits. Especially when they have ads every 7 minutes in between a show and the ads run for like 3 minutes.