Yes, retailers need more than just hosting. They need help creating the videos (we offer templates, editing tools and professional services). They need the video to be inserted without breaking page layout (we make it easy to add play buttons that expand and play the video in a lightbox). They need video a/b testing (ways to re-edit the video based on analytics). Also Video SEO is technical for product pages, and not done well. We help with that too.
Interesting strategies. I notice non-buffer seek isn't working. You guys might want to take a look at pseudostreaming plugin for flowplayer http://h264.code-shop.com/trac.