Certainly there are many factors that can have an effect on a sites growth and hosting is the foundation that a site is built on. You need a solid foundation because you certainly want hope for growth.
Oversold servers are cheap but terrible especially when you are trying to server videos...no one wants to jerk off with the video buffering and streaming uneven.
If you are not ready for a dedicated server yet I have found that HawkHost provides very good servers as well as top notch tech support (see sig for link).
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