Selfhosted
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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Running the media streaming software on a separate machine is a good idea IF you need transcoding; ie, you need/want to translate the files into another format or a lower quality (for poor remote connections) on-the-fly before serving them to users.
If your clients can play the files just fine as-is, another machine doesn't really add anything except complexity.