UPDATE: this answer may be outdated, see comments below. This will happen in the end anyway, since YouTube disables FLV and moves on to HTML5 video ...
They simply resolve the link to the FLV file and download it.
This is done by copying the video ID from the URL:
http:
Used to request video information:
http:
The video information includes TOKEN , which you can use to create another request:
http:
If all goes well, YouTube will respond using HTTP 303 See Other , including the Location header with a direct link to the FLV file.
Dolph
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