Totally 100% free. And the ads aren't even super-intrusive! And they even support HD video! As you can see I'm a total fanboy for this Stage6 service. This is what I've been asking for 6 months now
, and it's here much sooner than I expected. More people NEED to start using Stage6 instead of YouTube... for everything. I mean obviously the pirated content is great, but even things like user videos, screencasts, etc. It's just so much darn better!
One of the things that will limit its growth though, is that videos have to be in the DivX format and I don't think they do the transcoding themselves. You just have to upload a file that is already in the DivX format, and that is beyond most user's capabilities. Most people just upload their videos in whatever format they happen to be in and let YouTube handle the rest. Still, for the people that appreciate quality hopefully they'll see the light and start using Stage6 more. I think it's already happening and that is just awwwwesome.