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If you usually convert your movies to .wmv format, then to get a flash video of the same quality (or close to it) the file size is going to be a LOT bigger. And if your members want to watch their favorite clip/movie again, they gotta pull it down from your site again rather than just finding it on their hard drive.
So it doesn't save on bandwidth. It is pretty effective however at combatting P2P - although the techie guys will get around it anyway. And one benefit of Flash is that it works on all operating systems (as long as folks have a browser from within the last 3 years or so).
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