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Another option is highly protected streaming of all new content ... with downloading and saving allowed for older videos (ie. more than a few months old) for an extra fee.
For example, new video is release in Jan and then it becomes available in April for download / saving for an extra cost. Some small niche sites do this. It's not ideal, but is a compromise to keep piracy down while giving those who want to save videos a simple, legal way to do so.
As for whether to go FLV or WMV, MP4, etc ... that depends ... if a big selling point of the site is allowing members to download and save videos, then give them multiple options. FLV-only is fine, but some old timers and die-hard "collectors" expect more...
Do some analysis of your membership / ask them ... and do testing - release some new videos as FLV only and see whether there's much negative feedback or not and/or adverse (or perhaps positive due to less casual copying) change in signups and/or member retention.
Ron
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Domagon - Website Management and Domain Name Sales
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