Cloudflare video streaming question

I saw that some websites with cloudflare enabled cannot host and stream videos. [When I play a video, a message appears - “This video is restricted”]

Also, can I just embedded a video file which is hosted on other server?

Absolutely. Because hosting videos on a Cloudflare Proxied hostname violates Terms of Service 2.8:

Use of the Services for serving video or a disproportionate percentage of pictures, audio files, or other non-HTML content is prohibited, unless purchased separately as part of a Paid Service or expressly allowed under our Supplemental Terms for a specific Service.

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