But once again videos would only be referenced on Nostr and hosted through other protocols. And if you trust hosting services, or companies in general, you don't really need Blossom, or even Nostr. Option A is no different than plain HTTP cloud hosting services with extra steps. In any case, social media isn't Netflix and users are generally extremely reluctant to pay.

I think you should look into how blossom works. There's nothing stopping anyone from copying the file given the same sha, and hosting it themselves, which is why option B works. As for paying, you are wrong, plain and simple. There's no such thing as free. Almost every YouTube watcher pays with their private data and their time, and many subscribe to youtube premium so they don't have to pay with their time. Twitch, Rumble, kick, all work the same way. Nostr zaps prove that we prefer giving small tokens of gratitude for something we find valuable, and those are usually higher amounts than what YouTube pays per view on average. Furthermore even traditional non nostr platforms like patreon (and even YouTube channel subscriptions) show that individuals are willing to pay more than a Netflix subscription for their favorite creators. There are some making hundreds of thousands of dollars just from that. This also goes for floatplane and other pay for early access platforms. If you've ever watched a livestream (especially a vtuber live stream) you probably know how much people are willing to pay just to have their message read aloud. Pekora made millions of dollars just off of youtube superchats (let's ignore for a moment the fact that most of that money goes to cover corp). Asmongold despite his living condition, makes more in a month than you and i probably make in 1 year, just from paid subscriptions. X, shows that people are willing to pay to support text based content they like also.