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I didn't realise they said they stored the content on the Blockchain. I did'nt even think that would even be possible with the current technology.
Video files are big and Youtube has always run at a loss due to the server costs. Goggle is happy with getting all this data for free hoping that one day they can turn a profit on it but I think that day is far away.
I system like Napster or torrents with a desentralised front end with creators and fans storing the files could be the only alternative to Youtube . Thanks for restarting this very important conversation.