I recently built a new video uploader that offloads the video upload to youtube and spits back the link/embed so if you are willing to pay for custom development it is certainly possible. Unless you have a ridiculous server yourself or a second one separate from your site that you can run a queue for encoding the vids to a proper format for the web, you pretty much need to use an outside service or watch your server stuggle. Video encoding and streaming is heavy work for a server and can easily crush it's performance.