[penagate]

You can't install ffmpeg unless you are on dedicated or VPS hosting.
Some shared hosting services offer it too.
YouTube API is something we were looking at for those who can't host their own videos for whatever reason although we do have a manual conversion option as well.

As for ROI, that depends on how much marketing you do and the traffic you can attract to your site. Hosting your own videos will allow you to have full control over your content and keep it exclusive to your site.

There is an upfront cost for set up and so on, but recurring cost is not that great — under USD 100 per month (unless you're getting ripped off).

--------------- Added [DATE]1205645425[/DATE] at [TIME]1205645425[/TIME] ---------------

Originally Posted by johnstires

Also, does anyone know if it will be allowed for adult content sites?

I presume content is still covered by the YouTube Community Guidelines, which prohibit explicit adult content.