It works amazing. No ads. No third-party tracking. BUT it is not the cheapest solution. I have one site where there is an auto-play 5 minute HD video on the homepage and it costs $70 a month for just that video. But that's an extreme case, other lower traffic videos are very low cost (Obviously my workflow is very AWS centric. You could also successfully replace Elastic Transcoder with something like FFMPEG if you are open to doing more work to automate.
Still, you may want to consider one of the services optimized for video as they tend to offer lower cost and have transcoding built in.
To all the people saying to use Nginx or similar: you can do that. I strongly recommend putting a CDN in front of it, though. Because with video buffering a small change in latency can have a big effect and the CDN will make sure the video is served from geographically close edges.