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Advertisements can help. But, I think the bittorrent thing would be much better served than letting users leach videos. When you have people just downloading, then you're going to end up paying the bandwidth expenses and they can get quite expensive, just ask Halx with this forum. At least with bittorrent, when a user downloads, they are forced to upload.
Donations would also be a good thing. You would have to make it secure so people would trust your site, or you would go through a medium such as PayPal. They only thing with using PayPal though is that as a business, they require a certain percentage of what gets transacted.
Storage and bandwidth would be your two biggest issues that I can forsee. Some simple 200gig drive in a RAID 1 array would not last very long with videos on it and constant writing/reading. You would need to start with some sort of storage server with drives in RAID 5.
I'm also seeing some sort of database going to be needed to handle user/pass, video info, etc. These can grow very quickly. Our database file at work is around 18gigs (and it's just text).
Start one of these if you want, would be neat. But, just beware what all goes into running one of these too.
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"You hear the one about the fella who died, went to the pearly gates? St. Peter let him in. Sees a guy in a suit making a closing argument. Says, "Who's that?" St. Peter says, "Oh, that's God. Thinks he's Denny Crane."
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