This is how I plan to add video to my websites for low cost without needing YouTube. To look more professional in a member area and to retain visitors.
First off, I do all this on the Windows platform.
To capture the video, I'm interested in screen capture so purchased HyperCam3, it's very easy to use and costs just 30 Euros which is way cheaper than Camtasia Studio. The only downside I think is that there is no zoom in and out feature.
But you can set up a capture window and pan it around or lock it to a browser window.
What I am doing is capturing an area of the screen with dimensions of 640x360 pixels which is 16:9 aspect ratio like HD video, but you can just as easily capture 1280x720 (720p) or whatever. But you have to consider the file size.
In my case, I wanted just a nice size to display on a web page. I tried scaling the video dimensions by a ratio of 3:2 but 1:1 seemed to work best for image quality where web page text legibility is important.
In HyperCam3 I selected the DivX codec. This produced an AVI file. There are a bunch of others too which I don't know the details of.
I decided to dub sound onto the video in an editor since I am no good at narrating as I do things live.
For Audio capture I recommend Audacity which is free software. It's really easy to use and you can produce MP3 audio or WAV files with it and mix several tracks together.
And for background music, I am thinking to buy Sony Acid Music Studio since it is low cost and comes with access to a large range of royalty free music tracks (last time I checked). They do a free trial and this software is really easy to use.
If you are going to use music for commercial purposes, it's important to get permission to use the music. The same for graphics and video. So buying software that includes this royalty-free media is a good idea.
For video editing I'm using Sony Vegas which is not cheap but totally awesome software since it is easy and quick to use. I tried many video editing software packages before and nothing comes close to Vegas IMO. They also do a cheaper Home Movie Studio product which may be fine too. You can watch many online tutorial videos on YouTube to see this software in action.
Then I render finished video to MP4 to get a compact video file.
For playback I am using Flow Player. This is free Open Source software that is easy to add to a web page and will play back MP4 as well as FLV files. But you need to host your videos on your own server or Amazon S3 or whatever.
I guess there are also good software solutions on the Linux platform for Video editing, and certainly on the Mac?
So this is my master plan for making and publishing screen-capture videos.