Microsoft's solution to YouTube
Partner with Vimeo.
Vimeo is a premium video service that pushes users to attempt to create higher quality videos. They have tons of tutorials (which as of late I have been watching) that are actually helpful and informative on the process of video creation.
One of the biggest reasons for this suggestion is that Google competes with Microsoft in almost every arena (Search, Productivity, Maps, Operating System, Cloud Storage, etc.) while Vimeo does not.
Because of Vimeo not being a full-blown competitor like Google, it wont in it's long-term plan have a reason to deny Microsoft anything, the more markets the better (which is in line with Microsoft's ideal anyways). Add in the fact that the market could use some solid competition to YouTube (monopolies are never good in my opinion) and it's a win-win for users.
One last thing, if you haven't checked out Vimeo, you should. I recently made an account to switch off of YouTube (because I don't support what Google is doing to its users who use a Windows Phone, it's just not very good of them) and it's pretty awesome. They have tons of helpful tutorials to educate their user base on how to create high-quality video (and they promote it right off the bat). Here's a link if you're lazy: Vimeo, Your Videos Belong Here
Let me know what the Tribe thinks in the comments below. Are there any other competitors you would like to see Microsoft partner with? Do you have any other reasons why Vimeo is superior to YouTube or vice versa, if in fact it is a superior service? Do you think that YouTube can actually have a solid competitor?