Colocation make much more sense when it comes to large media companies. It gives them a lot more flexibility and stability. You would definitely not want to run intense applications on cloud hosting or other forms of virtual hosting. There are lots of datacenters in Irvine that cater to these type of colo customers. The best irvine colocation services are offered by a company called alchemy. They have a datacenter in a building that used to be a phone company co building. For this reason they have access to lots of fiber interconnections which will in the end provide them with superb routing.
Streaming companies have different layers of technology. First and foremost they have the CDN layer which is the part of their network that actually pushes out the videos and live streams. These servers definitely has to be ran on bare metal servers. Then there is the software front end layer. This is what allows the customers to manage their videos and access their services. Most of the time streaming offer a web interface where everything is controlled from. Full cabs are the choice so they can accommodate as many servers as possible.
Interconnecting servers can sometimes be a hassle. Most setups require and public and private network. This means double the network cables and double the power used. You will be running 2 switches independent of each other.