"The reason why YouTube will fail is because they are making all their money off of illegal copyrighted music and video material. Once media owners start suing and taking back what is theirs, YouTube is finished."
Why is that the critics don't see that it is the content being created by you and me that is what is driving the success of YouTube? Look at the "most popular" lists. They're not TV shows. They're not music videos ripped from MTV. They're videos and clips being produced by people with passion ... and sometimes talent.
Sure, there are a few popular "big media" videos, but not many. There are also a few popular ads (like the new Bravia spot), but I'm sure you won't hear Sony cry foul about those. The thing is, you could remove all the "big media" content from YouTube, and it would still be a smashing success. The quicker the folks in the towers realize that, the better off they'll be.
Stutter Frames is one example. Well at least half an example. I think the video is excellent (as are others on the momentshowing.net). The song "I Could Drive Forever" is by Smog.
I'm not sure if Jay Dedman got permission from Smog to use the song in the video. But here's the thing: I'd never heard of Smog before seeing Jay's video. (Please, no hate mail from the Smog posse.) I liked the track so much that I bought it on iTunes.