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IG reels and YouTube shorts are crap because creators create good content only for the place where all the audience is, which is TikTok. When users open TikTok they expect TikTok-style content. When users open YouTube they don't expect TikTok-style content, in fact they hate it. Same with IG reels.

It has nothing to do with the quality of the algorithm. In fact the YT algorithm has gotten worse since they introduced shorts because they shove shorts into people's faces.

A better question would be why is the regular YouTube algorithm so bad. And the answer is because it doesn't optimize at all for the consumers, but for the producers (producers of ads, that is). TT has figured out it doesn't matter what people consume as long as they consume, whereas YT is bullish into controlling what people consume.