It is pretty rare in 2021 to serve video just as "video files". HLS and DASH allow for adaptive quality streaming for bandwidth- or performance-constrained devices -- which can also help keep costs down, if you're shipping lower bitrate 480p renditions to some clients rather than full-boat 1080p -- and make resumption of partially played media easier. (Because you can append segments to an HLS or DASH manifest, you can also use this technology more easily for live-streamed content.)
This stuff is complicated. You can build out the pipelines to do this stuff yourself with either cloud services or a lot of duct tape -- I've done it before -- but it's A Lot Of Work to get right and economies of scale are a real thing. There exist services like Mux Video (YC W16, https://mux.com -- this is a shameless plug; I work on the devex team) package this and present straightforwardly consumable APIs for folks who just want to ship decent video at a reasonable price.