If they want to fight tech giants they need to think of the sustainability problem. Creating a video hosting instance cost a lot.
A privacy friendly tiktok alternative would work far better for the context of user based video hosting instances. All Videos would be 60s max and 1920x1080 or less so a lot more content would fit in the servers and therefore less maintainability. Adding a tip creator option , custom emojis and stuff with 20% going to the instance owner would allow self-sustainability.
Gain enough userbase and money To make a complimentary youtube like website.