How different is this alternative from "streaming"? Pardon my ignorance lol. I'm concerned that downloading the entire file to the user's PC will consume too much bandwidth. Is there another way for the user to play the DVD file, without downloading it first? Thanks.
The BW will be used either way. If BW is an issue you'll need to sacrifice a lot of quality (ie Youtube like always Right said).
Before I go to sleep, if BW is a big issue you could upload it to a free file hosting service. Your visitors will have to jump through a few hoops to get the file but it's free.