be interested to know if you consider making it mobile/future friendly important too.
Stuart Lamour - user experience developer - university of sussex (http://blogs.sussex.ac.uk/elearningteam/)
But we often upoad as well. Almost always MP4.
Mobile is quite important. Future proof? Less worried about that.
I'd like nice drag and drop video onto Moodle section, and for it just to work, with a nice smaller thumbnail. At present video management is still a little clunky in Moodle.
Question is a little vague.
Ideally, self or paid 3rd party hosting that doesn't include advertising. Advertising means that a robot profiles your learners, teachers, etc. and delivers messages to them via the video portal. Sometimes they're distracting and/or inappropriate.
Self-hosting puts a lot of load on your server so it's only suitable if you have sufficient CPU resources to deliver it via Moodle's proxy script for the number of concurrent users you expect to have. Serving files via PHP, as Moodle does, is a lot less efficient than letting the HTTP server do the work. Another option is to just put the videos in a directory in the www/public root and, if you need, control access via the HTTP server. I don't know why Moodle doesn't have this feature readily available: it isn't hard to do.
For larger numbers of users, paid hosting on a media server like those mentioned, e.g. Bits on the Run, Brightcove, or Wowza (there are hundreds to choose from) and not advertising supported, is probably the most appropriate option. That'll prevent incidents with learners being profiled and given inappropriate messages by random 3rd parties.
In terms of "future proofing", the CODECs issue doesn't seem to be showing any signs of being resolved (we have to get all the major browsers to support the same open source CODECs) so I'd recommend keeping original rushes/footage and master edits in their respective open* high bit rate formats so that you can re-encode videos easily as and when needed. Transcoding (converting) compressed, low bit rate videos is lossy and leaves unpleasant, distracting artefacts on the video image.
*I think it's a bad idea to keep video files and edits as proprietary project binaries, e.g. Adobe, Apple, or Sony. One reason, of many, is that they seem to be moving in the direction of hosting their software on the web (e.g. Adobe Creative Cloud) and charging for monthly access. If you fall behind on your monthly payments, you'll lose access to the software to view, edit and encode your rushes/footage and edits. Totally locked in and controlled by them!
I hope this helps!