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if you go with a CDN you only need one origin Server that store your videos (in case CDN pull) or to upload the directly to CDN... and yes the CDN way is easier to handle BUT it's not cheap in every case...
make the calc... better CDN's asking around $30 - $60/TB we operate a medium tube site it comsumes near 1.5PB monthly means the CDN solution would cost us $45K.... we have a deploy of around 20 dedicated servers that cost us $6K (we could handle 3PB+) + 60 hrs monthly for server management (we have a lot fully automated).
on end it depends how much you want to stay in your pocket..... :-)
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