It has been years long for coders to search for a method to hide link of media streaming on their site. In the end they have to admit the fact that everyone can just open temp folder of IE to get the media file and the actual URL easily. mms streaming and other on the air streaming method works well to keep the link from being stolen, but not all server supports them and not all webmaster knows how to set them up.
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What do you meant by "local url"? Do you mean that the files we upload to our url but not the files link out side ?
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The file could stay on your host or any other host. Local URL here means you have the control of that specific URL path to the media file. You can change it anytime along with the folder name that stores the files.