Video sites that explode their content online will succeed. I know from personal experience that giving users the ability to embed and otherwise share your content, off of your site, gives you views and exposure that can't be attained any other way. Even some big studio ventures are figuring it out:
One of the reasons Hulu caught on so quickly was the ability for users to embed full-length TV episodes and movies on their blogs and personal pages. Hulu says that its content has been distributed on 27,000 sites and over 500,000 individual embed players. Now the company is taking that distribution one step further and rolling out new widgets that expand those embedding options
...CTO Eric Feng also talked a little about Hulu's upcoming implementation of Facebook Connect on the video site, which will launch in August. Facebook users will be able share their activity with friends and track each other’s activities on the site
(from newteevee.com)
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