> Since video hosting is such a resource intensive undertaking, I wonder why many free porn sites don't have outages and have no limit on uploads for free users - unlike YouTube competitors.

Because they can run far riskier and less-vetted ads. They can also run as many of them as they want - the "target audience" doesn't really care if there's 1000 banner ads on a page. There's a reason much of malware is spread from porn sites.

For consumer facing video sites, they have to compete with YouTube on UX, which means much more stringent ad vetting, and far fewer ads. This likely tips the balance just enough that normal online video startups are not feasible without 3-4 years of runway.