Don’t Create a YouTube Clone with our Videos: Google
If you too have plans to venture into similar territory, drop the idea now because you never know when Google pulls the plug on your site and then all embedded clips will stop working. Here’s what the updated Term of Use document from YouTube has to say:
Inappropriate Content: Commercial use on YouTube
We've updated our Terms of Use to clarify what kinds of uses of the website and the YouTube Embeddable Player are permitted. We don't want to discourage you from putting the occasional YouTube video in your blog to comment on it or show your readers a video you like, even if you have general purpose ads somewhere on your blog. We will, however, enforce our Terms of Use against, say, a website that does nothing more than aggregate a bunch of embedded YouTube videos and intentionally tries to generate ad revenue from them.
Source:
Google.com
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