Compete against Youtube, et al, with a standalone application (or browser plugin, extension). Use distributed technology to lessen the hosting bandwidth cost.
The host serves: trackers, a search service, public keys, private key backup, mapping from email addresses to private keys, the "master" database of the initial insertions of all videos and metadata (which is subsequently served out peer to peer), and handles (sadly) all the censorship of explicit content and copyright infringement.
Technologies: Hashcash, Ratings (wisdom of the masses), Plausible Deniability, Onion Routing (10% of the time), Public-key cryptography, cryptographic checksums, "Make available offline", Ogg Theora, trackerless (DHT).
Censorship is unfortunate, but I think there is enough rope that a determined attacker to build a non-censoring version of the service hosted elsewhere. The only thing that needs to be kept secret is the mapping from private keys to email addresses.
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