Videos are very important. Every client we work with we encourage them to get a video testimonial, whether it's a professionally shot environment or an iPhone. As long as the audio is excellent, then the video is worth it.
All videos get uploaded to YouTube for extra exposure. Some that don't want the exposure get uploaded to Vimeo where we can control the narrative after the fact (no ads etc).
Many years ago, The Planet datacenter flew me and a group of other Tier 2 clients down to Texas for a roundtable discussion over 2 days regarding their business and how they can assist us further. Part of that also included us giving a short testimonial. I think I still have that recording around here. Anyway, the point being, each were uploaded to youtube and within a year, each of the videos were topping the 100k views.
These were not auto-play videos on the home page, these were videos that you had to go to the Testimonials section, select a video and select play.
Videos, much like pictures in testimonials, can play a huge factor with conversions and familiarity of a product/service.
Side note, videos, like audio, should never be hosted locally and should be done via a cloud service such as YouTube for faster transmit.