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4 points

Hosting is only half the equation you have to be able to serve it people all around the world at once with no buffering. People have no clue how amazing YouTube is for a free service. Bandwidth costs a fuckload of money too to add to the hosting cost.

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1 point

PopcornTime might be a good model for a decentralized YouTube system. You could pick a movie and then it would find a torrent and start downloading it.

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