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How do they pay for the hosting? Is it purely donation based?

Peertube would likely be a good self hosted solution for scaling this, as you end up with a swarm of seeders as content gets more popular, reducing the load on the main server: http://joinpeertube.org/en/

looks like they are a content aggregator. I tried to play some movies and all of them are in youtube.

Yes, the movies are embedded YouTube, but with their own playback controls overlaid on top, which on my browser (Chrome Version 75.0.3770.90) couldn't be hidden. Right clicking on the movie window and brings up the familiar YouTube menu, where you can copy the original URL.

It makes sense: there's no way a one-person operation can afford the bandwidth to stream movies. I am however impressed by the effort the owner goes to to find out the copyright status of each entry.

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