The problem is in their sizes and download times. The full downloading of some sponsor hosted FLV files may take up to a few minutes. So in case if your php.ini has a lesser execution time limit, the import of such video will be interrupted (failed).
Thus I don't think it's a good idea. By the way, I also don't see any SEO benefits of local hosted FLV content. Could you please tell me why did you decide it will affect the bounce rates?
12:46 am
Hello, from my own test and some people I know, just noticed a difference in the bounce rates from site we have with local hosted flv content and non-local hosted flv content. However it is still inconclusive because i have a site that is number one in google for a competitive term and is using all hosted flvs.
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