1) Video hosting is very expensive, due to high bandwidth and storage requirements. This is made worse when emulating YouTube, with its "anyone can upload for f

1) Video hosting is very expensive, due to high bandwidth and storage requirements. This is made worse when emulating YouTube, with its "anyone can upload for free, and anyone can view for free" model. 2) YouTube is an entrenched platform with a huge audience and wide reach. This causes a positive feedback loop where creators upload to YouTube because that's where the viewers are, and viewers flock to YouTube because that's where the creators are. This means that any creator that wants to upload elsewhere will struggle to find an audience, and any viewer looking to switch will lack content to view. This means that few companies have the resources to even attempt to compete with YouTube, and those that do struggle to find consistent users. YouTube certainly has its issues, but there isn't an obvious way for a major competitor to enter the space.