I've only done this kinda thing on a small scale before but I do have experience encoding videos including on servers.
I'm not gonna be hosting 4K HDR here. I'm thinking 720p max. And the upload will be limited by file size so I wouldn't need to worry about the expensive task of transcoding 4K down to 720p for example.
In my experience working with videos in the 720p range is no problem for a modern CPU VPS.
As the service grows we may see demand for higher resolution but by that point the money would be rolling in.
But realistically most people will view this content on their phones. I don't anticipate huge demand for high res video. 720p is the sweet spot where it can be compressed sufficiently to minimize storage and bandwidth usage and not make any difference in viewing experience on a phone.