So i had a play with the site. Its a good idea but has some real flaws. If the free version doesn’t allow someone to use their own URL, you don’t have a free version. You have a demo that cant be used for public consumption. No SEO control and no banner placements.
The site is already limited to 250 videos, the odds are people are not going to consider this large enough to use as a live site, however being able to use a custom URL and place adverts and do SEO would allow people on your Free plan to generate traffic and start bringing in revenue while the site is small, which would ensure they would be able to afford the cost of upgrading.
Allowing new comers to really learn how to do the trade before they try to go big would open you up to endless subscriptions from successful clients. Its also worth noting having ad slots they can use doesn’t mean that you cant. You could allow the users banner slots on the free versions while using all the vast slots for yourself. Giving them access to the VAST feed on upgrade. The free version could also contain links to your service in the footer.
The current version works on the misleading premise its free, its not. You cannot release the free site, it doesn’t have its own domain, you cant monitor analytics etc.