Even with a dedicated server, what are you going to use on the ipad to
- watch streaming movies
- download the movie and, after watching with the stock player, delete the movie to free up space

Some DIY server software has a dedicated app.

I continue to prefer something like DB, SS, GD rather than running my own server. If nothing else, my ISP upload speed is slow and renting a commercial server is way beyond my needs. Why use a commercial server at $20/month when I could get Netflix for $8/month? An existing cloud service and free software would be ideal.