It seems they're using akamai adaptive media delivery. Unfortunately akamai doesn't seem to have pricing on the page.

So maybe akamai is just milking them and they're passing the cost on to their customers. Though I do have to wonder about a video hosting "technology platform" that's just selling a thin webinterface on top of akamai.

I agree, you can do this on $10 per month yourself if you have the skills and $3500 is ridiculous.