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I don't think you'll have much luck hosting outside China for a bandwidth intense application like that. Here's a thread that addresses this issue:
I am hosting in Beijing with a non-Chinese (Asian) company and it is working well, so far as I can tell from here.
See for example [yahoo.cn...] the number at the bottom indicates that the site had applied and approved. The regulation isn't enforced uniformly and you can see sites that are just registered (bei) or even some not at all. For a serious site, don't miss this part of the plan.
I always believe in starting small and scale unless of course you have other people money to spend. :)
[edited by: Woz at 10:37 pm (utc) on April 16, 2007]
[edit reason] Used Generic Example [/edit]
For a video site you will most likely need a transaction license which is not as easy to apply as a simple site registration. Looking at the major video sites, they are using such license.
The article also mention that regulation is going to be tighten. If you want to be in this play, you better act fast! When the laws come out you probably still can get a license but will be many magnitudes more difficult - in terms of time and money.