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A VPS (Virtual Private Server) is basically a portion of the resources of a large physical server which is hosted by a hosting service provider. Before start streaming your audio or video content, you have to make sure that they are in the correct format. A VPS hosting solution can offer you the same level of customizability and security as of a dedicated server, but at a far lesser price.
Additionally, you can always upgrade and scale your VPS hosting solution accordingly to your needs.
A VPS hosting solution provider will be taking care of the maintenance, and any other technical issues that would come up with the server and will give a guarantee on the uptime of the servers. Regardless of what type of application you use, it will be impossible to stream them if they are not in the right file format.

Although it highly depends on the quality and speed of the connection, it can provide excellent video quality.
While you can get a very powerful server and fully customizable server, dedicated servers are really expensive.
So a VPS hosting solution can utilize the power of streaming video and audio, and is one of the best options to maximize performance while keeping the cost to a minimum.
While FLV, WebM, ASF and MPEG are popular formats for video streaming, audios are usually steamed in MP3 file format. If you buy a VPS with hyper virtualization, you will not be affected or even notice that there are other users on the same physical server. And for audio streaming you can choose from many of the popular options, like BroadWave or IceCast.

After you set up your VPS, you could look into downloading applications, which would enable you to host and stream audio and video content on it. This content will be available for the users to view without the need to wait for them to get fully download, or the need to wait for buffering.

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