In reply to:
Now on the other hand, I am unhappy, because I have no similar alternative package. So if you happen to know of an alternative package, I'd be glad to know.
I know what I'm thinking is not really an "alternative package", but I've looked into this situation a bit, and here is my thinking:
Since YouTube already provides a robust "uploading structure" for "free", why not just rely on them for the *uploading* and back-end processing? They have the money and computer power, and they make it available for free, so why not have your users use YouTube (or similar) for *that* before "embedding" that video into your site or uploading the resultant .flv for use on your site?
There are plug-ins available for WordPress (and components for Joomla!), for example, that allow you, or your users, to embed YouTube (and other video sites) videos in your site.
I can envision a "shared server friendly" setup where you just provide the facility to "embedd" YouTube videos in your site. The result "in your site" would be essentially the same but you would not have to store the video, or provide the back-end processing power for handling the videos.
For that matter, why provide the video processing capability (on your bandwidth and with your shared resources) at all when your user can do that processing "off line" and just upload the "ready for display" video. THis is another way of approaching the goal - user posted videos on your site.
This would work well, I'm thinking, and allow you to have a "video" site without having to duplicate the infrastructure for processing video.
Just thinking out loud.
--rlparker