TL;DR: Yes!
Yes! SmartVideo is compatible with YouTube.
SmartVideo downloads a copy of your YouTube video, encodes it, stores the copy on a global delivery network, then converts those YouTube embeds to our fast-loading player, automatically.
Once installed, SmartVideo automatically converts any YouTube videos found on your site. You can also use YouTube as a source for new videos you add to your site using our WordPress plugin or a SmartVideo tag.
Note: Due to YouTube restrictions, we cannot import any video greater than 2 hours in length from YouTube. This restriction does not apply to other sources.