For many years, we have referred to 720p resolution videos as HD (high definition). However, according to YouTube’s latest changes, 720p is no longer considered HD resolution. All resolutions from 720p and below are now classified as SD (standard definition).
Previously, according to what we knew, videos with 360p or 480p resolution were considered SD. Resolutions of 720p and above were classified as HD, further divided into FullHD, UltraHD, and beyond.

Now, if you open a YouTube video in a web browser and click on the gear icon to change the resolution, you can see that YouTube no longer considers 720p as HD; only 1080p is still regarded as HD resolution.
Of course, there’s nothing changing about how we watch or upload videos on YouTube; it’s merely a small change in the definition and classification of YouTube’s resolutions. The 720p resolution will still be there and is not being removed.

However, this change has sparked some controversy within the global online community. Some argue that resolutions of 1440p and 2160p are becoming more popular, thus the decision to no longer recognize 720p as HD is reasonable. Others contend that having more pixels doesn’t necessarily mean the image will look better; 720p is still quite clear on some smaller screens.
In fact, many people prefer watching YouTube videos at 720p resolution because it is clear enough and loads faster than 1080p. Therefore, classifying 720p as SD instead of HD may leave many YouTube users feeling disappointed.
Source: wccftech