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Sure, a VPS can be used for just about anything. Hosting your website, audio streaming, video streaming, you name it, you can probably do it. Is this always the best course of action though? If you have to stream video to 50 or 100 people live, should you really use a low end VPS for it, when there are dozens of free streaming providers that can handle it? Chances are, the experience is going to be 10 times better with a provider that specializes in video streaming and it'll be 10 times easier, too.
For example, one of my websites does two four-hour live streams, 4 nights a week, to 100 people each. I could spend a fortune on VPSes just to support that or just use a free live streaming provider that also provides a chat and archives of the streams.
So, what do you guys think? Is there a reason you've chosen (or suggest) one approach over the other?