It wonderfully does! And as the other reply states, it also can automatically skip over paid promotional segments and “remember to like, comment and subscribe” stuff. It’s wonderful. You can also customize those settings and skip or not skip whatever bits you want. For example, I turned off a setting that would skip “non-music portion” of music videos. That was a tad annoying to me. But it’s the only form of youtube I would use on my tvs. I can’t stand constant ad interruptions on youtube.

It blocks ads and promotional segments by default

Yes