> If you want to compete with YT you need to basically build AWS S3 in your own data centers. You'd have to find a way to make your service run cheaper than google can if you wanted to survive.

YouTube's economy of scale goes way beyond having their own datacenters, they have edge caches installed inside most ISP networks which soak up YT traffic before it even reaches a Google DC. It would take a staggering amount of investment to compete with them on cost.