If you could drastically reduce the size of videos, self-hosting video distribution pages for e.g. training material would suddenly become feasible, if not for individuals then for small companies.
Yep, we serve around 50.000 hours of video in a month with a similar format and have ~0 extra bandwidth fees.
If you try to do it, you'll find that self-hosting for these scenarios is surprisingly cheap. You might be able to just use YouTube, anyway.
Well, youtube is exactly not self-hosted. For one reason or another, you might really not want to have to deal with youtube (or vimeo for that matter) and it would be great to have the possibility to opt out of using such a service.