I agree that there's a big opportunity for this, but the distributed storage required for this would be much greater than what's normally used for a cryptocurrency block chain. In addition to keeping track of the currency on a blockchain, you would have to store what could easily be terabytes of video. You could either accomplish this by increasing the amount of data that each node is expected to store, or by increasing the number of nodes on the network.
I agree that it would require terabytes of data to store everything, but if you read carefully, I clearly say that it will going to be P2P. Much like bittorrent but optimized for real-time playback. So actually only the users store the content. Servers are the interface only.
When a user press "add to favorite", then he becomes a seed. And while the user is watching a video, he acts also as a seed for the content he is actually viewing.
So there is no need for storing any video in any server, with one exception: when someone pays a fee, the media is cached in the servers, and the servers are the shareholders of the DAC, so they obtain revenue in exchange for the space and bandwidth.