Yes and no. Storage should cost in the ballpark of $200M/yr or less. Transcoding, networking, and delivery should be similar. Let's round up to $10B/yr just for fun.

YT makes $40B/yr (revenue IIRC) across its 3B customers, or $1.11/mo. $16/mo seems high by comparison. It's very high with reasonable costs of $0.28/mo. Nearly every other industry on the planet is jealous of margins like that.

A normal counter-argument here is that they should be allowed to reap those profits till competition forces them to do otherwise. That's a little at odds with our normal view toward monopolies, especially when the monopoly engages in anti-competitive acts to preserve that edge, but whatever; now you're at least having a real debate about real facts and things you care about.

Another is that YT's expenses in practice are way higher than that because they need to hire a bunch of ML people or whatever to extract even more ad money out of you, and that's a point I disagree with pretty firmly. I'm not sure why my subscription needs to subsidize a company's other predatory tendencies.