A better solution would be to deploy a media server that can provide multiple stream formats. For example, Microsoft IIS Media Services [1] supports Microsoft's Smooth Streaming, HLS and MPEG-DASH without having to re-encode video for each format.
With such a solution, nearly every client out there can use a natively supported stream format without overhead. Also, Microsoft has a decent cloud offering with Windows Azure Media Services [2] that fixes all of this for you, including optional DRM.
I think at the end of the day the better solution for most people would be to use something like Brightcove, The Platform, Ooyala, Adobe, paid Vimeo, or even Youtube.
Unless you're Netflix, I wouldn't bother with this stuff yourself. Even then, a lot of (A)VOD sites 'outsource' this stuff to Brightcove or The Platform.
With such a solution, nearly every client out there can use a natively supported stream format without overhead. Also, Microsoft has a decent cloud offering with Windows Azure Media Services [2] that fixes all of this for you, including optional DRM.
[1] http://www.iis.net/media [2] https://azure.microsoft.com/en-us/services/media-services/