I received the following question on our website today. These are the kinds of things we're happy to answer anytime, so we'll do it here publicly.
SCORM and hosted video. Hi, Fantastic website .. many many thanks. One quick question I have. I have my videos on a hosted server. Do I have to package those up into a .zip file ? .. or can I have the target LMS stream them from my server ? .. I would prefer them to stream the content, rather than having it downloadable in the .zip file. Is that possible? Many thanks for any help.
Generally, an LMS will expect the entirety of the content to be delivered to them so they can host, although most don't mind if you want to host some of the assets elsewhere. The crux of the issue, though, is something called the cross domain scripting problem.
Now, video is a slightly different case. If you don't care to know where in the video the learner is, then you can treat the video as a "dumb" asset. If it doesn't have to communicate at all, then it can simply be launched and forgotten. In this scenario, the video could absolutely be hosted/streamed from your site without any issue.