Originally Posted by tomash999

There are basically 4 options to use videos:
1. Original videos in a paysite, either your own membership site or on a pay-per-view network.
2. Host amateur, professional (and mostly pirated) videos on your tube site. Earn from ads and premium membership
3. Embed video players from other tube sites and earn from clicks on the embedded player.
4. Host sponsored videos. Affiliate receive free material every week, of 1:00-10:00 minutes videos to promote on their websites.

Of course you can use a combination of all the above. Hosting the videos is more complicated at the beginning in terms of performance and costs, but it is better in the long run as it gives more control and reduce the bounce rate.

Embedded content is similar to hosting flash games.