Question: I am making a website where the page background is a video.

I'm just wondering is it better I host this video on the same server as the website, or does it make sense to host it on YouTube as I'm assuming they offer better regional performance for video streaming.

Thanks for your input!

Answer: 
For bandwidth savings is a good practice host your video on youtube.
And youtube came with these functionality:

* Rapid loading video
* Multiple format support
* Different choice of resolution
* Good video
* Traffic income from youtube
You should totally host it in YouTube. The bandwidth savings are reason enough IMHO.