Following the post about TheVideoBay on TechCrunch... let me ask you:
Where can you download all the hot video content in the world?
Obviously, YouTube and the like are not the answer: they are forced to fight against piracy, and left over with the crumbs: user generated content, a few content deals, and a plateful of copyright lawsuits.
The actual answer is, like it or not, piracy. And, now that all the big US-based BitTorrent hubs have been taken down, the flagship of the piracy world is... ThePirateBay, the world's largest BitTorrent tracker.
Unlike many pirate sites that hide behind ridiculous claims of "not for piracy, backup only, infringing material will be erased...", ThePirateBay is explicitly encouraging the exchange of copyrighted content. This attitude makes them the largest and most powerful actor fighting against copyright on the Internet today. They even have a political branch, PiratByrån which, according to Wikipedia, "wishes to give another point of view about spreading information than the current lobby groups do".
And now ThePirateBay is, as it seems, building a new video streaming web-site: TheVideobay. What is it going to be?
It could be, as Michael Arrington suggests, a kind of "YouTube without the DMCA take down notices". Note that ThePirateBay is based in Europe and not directly concerned by the US-specific DMCA, although other similar Swedish and European laws do exist.
The main issue, to my mind, is that of hosting infringing material. In fact, ThePirateBay has successfully fought back all legal attacks as of today on grounds that they don't host any infringing material. They only serve and track torrents, that is P2P download links based on the BitTorrent protocol, which means that the content circulates between peers, without passing through ThePirateBay's servers. Were ThePirateBay to serve infringing video streaming, it would change the rules completely. After the fiasco of the May 2006 police raid, the copyright police is standing watch with a vengeance, so any wrong step and I guess it could be brought down within a day, this time with a strong case against it.
ThePirateBay has always been standing firm on their legal position, which is apparently legitimate in Swedish law. So I don't think they will launch a YouTube-like site with the same content as their torrent site. My guess is that they will play video streaming on the clean side of copyright, as they seem to be preparing for music with playble.com.
Another plausible scenario is for TheVideoBay to reference - but not host - streaming videos of copyrighted content found on other sites. There are already many sites doing this, and the fact that they work so well clearly shows that the DMCA is not up to the challenge. The pressure they put on classical YouTube-like video streaming sites is not really keeping the copyrighted content away from the browsers of those who know where to look. And mind you that referencing material, legitimate or not, is what Google and the other search engines do all the time, anyway.