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Now from the SEO standpoint: what's the best? Will Google pick up videos on our site even if we don't host on Youtube?
I don't want to host on Youtube anyway, but will Google should our on page videos on its SERPs? (provided that our site has a bit of authority)
I also expect to see this situation evolve over time. I think it's an artifact of this particular moment in time and not anything permanent. However, since many SMB sites do not want to cover the bandwidth involved in hosting their own video, it's likely to change slowly.