Watermark Embedded Video

Greetings,

My question is right to the point and rather simple:

Is it possible to somehow put your Watermark on a Video that has been embedded on to your Vshare Site?

--
I assume there is no other way to have a Video on your Server without it taking up space, other than embedding. (i.e When you 'download' a video from Youtube, it is taking up space, when you Upload your own Material, it takes up space, but when you embed, it takes up a lot less space).

As such, is there a way, once embedded, to put your watermark up? Or, if not, is there another way to Upload or Download a Video without it taking up much of your own server resources?

--
Thanks for your time,

-Blain