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YouTube Expanded API - 8/9/2010
YouTube goes on to say that it's permissible to use the API to show YouTube content on an ad-enabled blog or Web site, just as long as they aren't "comprised solely or substantially of YouTube video content."
Not surprisingly, the Google-owned site doesn't want anyone else making money off its content, especially competitors.
YouTube's player will still be the choice for individual bloggers and smaller businesses that supplement their content with videos and don't mind YouTube's branding and ads.