One addition thing is that you can see the video in minimized window, not in YouTube Red.
On a serious note: My app was rejected because it plays YouTube videos in the background, but there are others apps like ListenOnRepeat(https://play.google.com/store/apps/details?id=com.youtuberep...) which also do the same.
I did not get any satisfactory reply from google about what in particular I was doing wrong, even after asking multiple times.