Synchronized on-demand video is expected by today's web user.

Try using non-streaming techniques for long form video, and you will begin to clog up
your allotted bandwidth pipeline, and begin losing audio/video synchronicity.

Video streaming comes in many forms and flavors.

Digital WorkHorse recommends the below systems.

Video Streaming Systems

Longtail Video (JW Player)  - Great Custom Video Player - not for the faint of heart
Simple CDN - Great Flash Streaming Company - no contracts, pay as you go - very reasonably priced, easy to use
Kaltura - Full API and Player Customization, easiest to use, submit anything for compression
BandCon - These are the big boys.  They have a hand in everything and can help you with larger systems.

Digital WorkHorse can work with you to identify the best system to handle your video needs.