What country are you in? I wonder if they're rolling it out to smaller markets to see how much backlash they get.
Time to get a federated video hosting service scaled up ASAP. But who could afford the bandwidth and storage? We need a stable torrent-based streaming solution I suppose.
It really isn’t. I can get a gigabit pipe and all the storage i can cram into a 4U for a few hundred a month. That is enough to serve several dozen users. Add on a CDN and now you can serve thousands or more. I can probably find 10 or 100 gigabit offerings for not much more.
The bigger issue is copyright. A site that gains traction in the video space by ripping youtube videos would get sued into oblivion.