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Sponsors offer hosting to their affiliates to eliminate bandwidth cost concerns as a factor for the affiliates promoting their program. This can be a huge issue, especially if they have movie galleries. But as you say, many Link Lists and a growing number of TGP's are refusing to list sponsor hosted sites and galleries.
This was also put forward as a way around 2257, but as I see it the affiliate is still the publisher even if the sponsor is hosting.
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