Ridiculous. I don't believe in digital fingerprinting. If it does exist, there'll be a million workarounds before it even gets underway. They should just apologize, pay the amount they're being sued for, and go right on hosting the plaintiffs' material illegally.
Everyone knows if the tube goes down, there'll be a dozen mockups within a week trying to cash in on the market. Illegal video streaming isn't going away. It's the copyrites that'll have to adapt.
If they were serious, they'd just hire a few dozen employees, set up a pending upload queu, and screen out the unwanteds before they get online. The turnover for new videos would go down, but those are mostly illegal videos, anyway.