Not the person you are responding to but for the HTML5 video tag to work how does server have to be set up? What are you serving the video over? What protocol are you using? New to this so curious about your implementation.
Not the person you were asking, but you can host it the same way you host the HTML file containing the <video> tag. Both files are served as static content by any web server you choose (eg nginx, Apache). You also get "streaming" for free because the browser will request the video file in portions instead of "the whole thing at the same time." Web servers support this out of the box.