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While they have been "moving" to sponsor clips, they have TONS and TONS of illegal clips and without the illegal clips their traffic model would implode. No question about that and Fabian even expressed this when asked why he isn't strict about adding technology similar to Google that thwarts illegal uploads.
My dad uploaded a video slideshow for my mom for Valentine's Day. It had music by some singer that was popular in their time. Youtube stripped the audio from his video the second he uploaded it.
Don't tell me the technology to be legal isn't there. Fabian chooses not to use it, because if he did, the traffic would move to some other site(s).
Soon all tubes will be running on .ru domains like the streaming sports sites are now along with many torrent trackers.
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