Nothing new. A few weeks back I came across some tube sites offering similar.
They charge a monthly membership, processed through CCBill, and pay out to those who upload the illegal videos all day. So they get the traffic and make the ad revenue. But do the dangling carrot for others to do the 'user uploads' and paid in membership money.
I was a bit surprised to see the CCBill was doing the processing on them.
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Enough Said. 
"Would you rather live like a king for a year or like a prince forever?"
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