Consider a small business that needs to integrate with a video hosting service that provides API access and the videos to work across all web and mobile devices.
We use Wistia (<a href="http://www.wistia.com" rel="nofollow">http://www.wistia.com</a>), and they're absolutely fantastic. Lightning fast loading and amazing performance on mobile. Also would recommend checking into Vimeo Pro.
I'm an engineer on the Zencoder team, which is an API for the transcoding piece of the puzzle. My company (Brightcove) also has a full video CMS product (Video Cloud), but it's not really geared towards small businesses.<p>If you want a fairly cheap solution to bootstrap that you control, I'd honestly suggest going the DIY route in terms of hosting / playback and use a service like Zencoder to deal with the transcoding. If you go this route and need a player, I also contribute to the Video.js project :)
We use Amazon S3/Cloudfront. You could use Amazon Elastic Transcoder to convert the videos into various formats as well, but we use Encoding.com for that purpose.