PiP-it

PiP-it allows you to play videos picture-in-picture and ad-free from the YouTube app and other apps that block or don't offer this functionality.
From the YouTube app, just press Share > More > Picture in Picture with PiP-it! and *boom* your video plays picture in picture while you can continue to use your iPad for other things.
New Playlists Feature in 2.0: 
Create playlists of YouTube and other videos that auto-play picture in picture without any interaction!
Great for multitasking:
• Watching videos without pausing when checking emails or messages
• Taking notes while watching a video
• Listening to music videos while continuing to work on your iPad
PiP-it also works with videos you have in
- Photos app
- Files app
- Any stream URL
- Many websites with a video tags