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Competition would be nice, but unless someone has about a billion dollars to build a data center, fill it with hardware and start selling ads on a scale like Google, I think they pretty much have a monopoly on this. Unless... you know... Bing Video... *Shudder*.
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if you're referring to YouTube with this, i think you're wrong. YouTube won't own the majority forever, i reckon eventually they'll just meld with a bigger corporation. maybe Google, which would be enforcing your point really. i admit Google has more fingers in pies than Aunt Bessie on crack. but like you said, Bing Video is another contender, as god awful as it is. all the video hosting sites are, just by existing they're taking a portion of the market. they have to be otherwise they wouldn't exist.
mark my words, just give it time. yootoob is going down one way or another.