All of our trailers are actually being streamed from YouTube. We're using the YouTube API on the website to build a nice HTML5 player, and then in the app, HTML5 plays using the native player.

I always assumed you could not do that as the terms of service say

You agree not to distribute in any medium any part of the Service or the Content without YouTube's prior written authorization, unless YouTube makes available the means for such distribution through functionality offered by the Service (such as the Embeddable Player).

Am I mistaken?

We're just using the embeddable player (the iframe version of it) which automatically uses Flash on the web and HTML 5 <video> on iOS http://code.google.com/apis/youtube/iframe_api_reference.htm...

Nice! Why didn't I think of that? :)