Those embedded players don't need a streaming server. They are able to
"stream" on their own. I think it's progressive download.
Progressive download does not allow to rewind the stream.

The players allow rewinding the "stream" (let's call it
pseudostreaming). This fully depends on the player. If it progressively
downloads the file, there's no problem to move forth and back in the
already downloaded part. See forums on the flowplayer or other ones.

Even if the player does not cache the already played part, it could "resume" the download from any point. Most http-servers nowadays support resuming downloads. So this would be another way how rewinding could be done without real streaming.

Greets,
Kiste
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