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SevenCubed - 9:31 pm on Oct 29, 2012 (gmt 0)
I have 1 site that is embedding a YouTube video that does not belong to the site owner. It's going on 3 years now and there hasn't been any adverse effect whatsoever. The site ranks #1 locally on goog.ca for the service term demonstrated in the video and #5 internationally on goog.ca and goog.com for "service-keyword type-keyword video" (the original source is in spot #1).
1) The page that the embedded YouTube video is on has 450 words of related text.
2) The video is a high quality production posted by a U.K. association of this same service (an authority).
3) I place a link to the actual video on the YouTube site right above the embedded player in case someone prefers to watch it at source.
4) It may or may not be relevant but it's high international ranking might be boosted by the extra effort to code the embedded object so that it validates to xhtml 1.1 (the original one on YouTube doesn't). It also passes Section 508 usability validation. Just in case you want it for consideration I'll paste an example. I'll leave in the additional parameters in case you want to tinker with them.
<object type="application/x-shockwave-flash" data="http://www.example.com/x/xxxxxxxxx&hl=en_US&fs=1&rel=0&color1=0x234900&color2=0x4e9e00&border=1" width="637" height="405"><param name="movie" value="http://www.example.com/x/xxxxxxxxx&hl=en_US&fs=1&rel=0&color1=0x234900&color2=0x4e9e00&border=1" /><param name="FlashVars" value="playerMode=embedded" /><span>It appears you do not have, or have disabled, the <a href="http://get.adobe.com/flashplayer/" title="Flash Plugin">Flash</a> plugin that is required for this presentation.</span><param name="wmode" value="transparent" /></object>
I don't think you have anything to be concerned about if it's just a scattering of a few videos here and there as long as there is sufficient content on the page that supports what the video is about.