video self hosted

Uploaded an 187 MB avi -file video will not play as that format cannot be added to a web page.
only option is to add a file and let folks download it. Resulting in heavy loads on the web server.

Solution Converted the avi to mk4 this reduced size down to 30MB
I uploaded it; then used the video block it play the movie directly from the media library
Benefit of the small file size is it reduces the server loads? The streaming data is smaller so it will be less prone to pausing: while the client media player waits to buffers the video