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Watermarking only helps if thye do not put their one tube site watermark over your own, which has happened to me a few times. And the webmaster of this tube site ignored all my DMCA's ... then i had to DMCA his hosting and then he listened !!!
And if they steal ALL YOUR CONTENT ... watermarking wont help if all they can do is search the free tube site for more of your content or even all of it.
This is why I dont even allow downloads on my sites and my members section suspends activity if it detects someone is trying to access the video stream via other means
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