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what is the alternative to youtube?
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Absolutely this. As much as I'd love a free (and preferably FOSS) alternative to YouTube that's just as good, I don't see a realistic way for that to happen. Video is expensive.
I think it'll happen on some level eventually. Storage costs are only going to go down over the long term. Sure, higher resolution video is bigger, and they'll probably keep going even higher, but most people don't care past a certain point. It won't happen soon, but give it 10 or so years I could see it being more viable.
Possibly, and hopefully! And it is true that storage will only get cheaper, and theoretically bandwidth will be too. But for now, bandwidth is expensive and (fast) storage is also expensive, despite being much more affordable than it was not too many years ago.