YouTube currently can not compete with regular television because while they may be getting 20 hours of video being uploaded every minute, most of that video is ridiculous home videos of people like Boxxy.
For YouTube to compete they will have to do a better job of helping people find the quality videos while convincing major television producers to allow their shows to be "broadcast" on YouTube.
I disagree. Youtube has over 100 million users and they watched nearly 6 billion videos [1]. It's almost as much as digital and basic cable customers combined [2]. Content providers should be begging Youtube to broadcast their content with their distribution potential.
For YouTube to compete they will have to do a better job of helping people find the quality videos while convincing major television producers to allow their shows to be "broadcast" on YouTube.