Earlier quoted context omitted.
I didn't claim YouTube's success was due to any technical features like supporting seeking. I agree a large part of why they were so successful was because of the copyrighted content. They took a risk that Google wouldn't. That proves my point exactly. Startups do many things that big companies can't or won't do. Sometimes that takes the form of working in a gray area of the law.
If someone wants to claim "very small companies are more likely to try something legally dubious because they have very little to lose," that's a completely different argument. Not to mention, YouTube and then Google had to pay up in order to square things away and neutralize the risk. Big companies are more comfortable playing fast and loose with the rights of individuals, while individuals and very small companies…
Microsoft has historically always been this way, even in the very early days. Almost every single one of their significantly successful projects was bought as a seed from a startup and grown from within. They do add a lot of hard work, but the irreplaceable ingredients are done by startups.
Google and Microsoft are in at least tacit agreement that startups are the best way anyone has found to develop great new software.