Last updated: 2026-01-15

If you want to play a local video while you record your screen, start with StreamYard for an easy, browser-based studio that handles clip playback and high-quality local recordings without complex setup. Use OBS only when you specifically need deep scene control or playlisted local files, and Loom when you just need lightweight screen capture plus system audio.

Summary

• StreamYard lets you upload short clips, stream longer local files, and capture local multi-track recordings in one browser-based studio. (StreamYard Help Center)
• OBS offers powerful local media playback and playlists, but expects more technical setup and stronger hardware. (OBS Project)
• Loom is geared toward quick async screen shares; it can capture system audio from local videos but reserves video upload/import for paid plans. (Loom Help)
• For most creators and teams in the US, StreamYard balances local playback, recording quality, and simplicity better than other options.

What does “local video playback during recordings” actually mean?

When people search for “screen recording software for local video playback during recordings,” they usually want to:

• Record their screen or a layout while a pre-recorded video file is playing.
• Capture both the system audio from that video and their microphone commentary.
• Keep the workflow simple enough to run on a typical laptop.

There are two common setups:

1. Studio-style recording: You’re in a virtual studio, you trigger clips (intros, b-roll, ads) and talk over them while recording.
2. Raw screen capture: You hit record, start a local MP4 on your desktop, and want everything (video + sound + your voice) captured in one pass.

StreamYard sits firmly in the first camp: a studio where you can add clips and layouts, then record locally and in the cloud. OBS can do both but demands more tuning. Loom lives mostly in the second camp and focuses on quick captures rather than a full studio environment.

How does StreamYard handle local video playback while recording?

In StreamYard, you record from a browser-based studio where you can share your screen, your camera, and preloaded clips. Custom video clips must be short (under 10 minutes) and under the documented file-size limits, with higher limits on business-oriented tiers. (StreamYard Help Center)

Here’s what that looks like in practice:

• Upload clips for intros, bumpers, and b-roll. You drop short MP4s into your brand assets, then trigger them during the session.
• Stream longer local files when needed. If your video is longer than the 10‑minute clip limit, you can use the local video file‑sharing option to play it into your studio while you record. (StreamYard Help Center)
• Control what viewers see. You can switch layouts, spotlight yourself or your screen, and keep presenter notes visible only to you.
• Separate control of mic and system audio. You decide how loud your commentary is versus the clip’s audio.

Crucially, StreamYard supports local multi-track recordings. When local recording is enabled, each participant gets their own local audio and video file for higher-quality post-production. The free plan includes 2 hours per month of local recording, while paid plans allow unlimited local recording time, subject to your device’s resources. (StreamYard Help Center)

For a lot of US creators and teams, this feels like using a TV control room in your browser: you roll clips, talk over them, and walk away with separate local files you can repurpose anywhere.

What are StreamYard’s local recording limits and storage trade-offs?

Local recording and cloud recording behave a bit differently, and understanding that helps you plan longer sessions.

• Local recording time: On the free plan, you get up to 2 hours of local recording per month. On paid plans, local recording is effectively unlimited; the real constraints are your computer and disk space. (StreamYard Help Center)
• Cloud recording length: Paid plans can record live or offline sessions in the cloud for up to 10 hours per stream, or 24 hours on higher business tiers, before a new file is created. (StreamYard Support)
• Storage is measured in hours, not gigabytes. Free workspaces include 5 hours of stored recordings, while standard paid workspaces include 50 hours, and business tiers go to 700+ hours, with add-ons available if you need more. (StreamYard Support)

The trade-off is clear: StreamYard keeps the experience simple and reliable, but if you record long content very frequently, you will eventually need to clear old files or expand storage. For most workflows where you export and archive finished videos elsewhere (YouTube, a drive, or an editor), that’s a manageable routine.

How does StreamYard compare to OBS for local playback during recordings?

OBS is a powerhouse desktop app for people who want fine-grained control and are willing to invest setup time. It runs on Windows, macOS, and Linux, and it’s free and open source. (OBS Studio)

For local media playback specifically:

• OBS has a Media Source that can play local video files in common formats like MP4, MOV, MKV, and others, with options like loop and “restart playback when source becomes active.” (OBS Project)
• It also provides a VLC Video Source that lets you build playlists of local files, similar to an image slideshow, as long as VLC is installed on your system. (OBS Project)

Where OBS is stronger than StreamYard:

• Advanced scene routing (multiple displays, overlays, and complex cuts).
• Detailed control of codecs, bitrates, and file formats.
• No vendor-imposed caps; you’re only limited by your hardware and storage.

Where StreamYard is usually the better default:

• Zero-install, browser-based studio that runs on typical laptops.
• Clip playback and longer local files without touching encoder settings.
• Built-in local multi-track plus cloud recording and easy exports.
• Fast onboarding for non-technical presenters and distributed guests.

If you’re producing a heavily choreographed show with elaborate playlists, virtual sets, and custom encoding, OBS will reward the time you invest. If you just want to roll a few local videos, talk over them, and ship content, StreamYard removes a lot of friction.

Where does Loom fit for playing local videos while you record?

Loom is optimized for quick async communication: hit record, explain something on your screen, and share a link with your team. It’s not trying to be a full studio.

For this specific use case:

• Loom can capture system audio, so if you play a local video while you screen record, the sound from that video can be included in your capture. (Atlassian / Loom Docs)
• Video upload and import (for using existing files rather than live playback) is reserved for Business, Business + AI, and Enterprise plans, not the free Starter tier. (Loom Help)

This makes Loom a reasonable choice when you:

• Need a quick walkthrough where you occasionally play short local clips.
• Care more about instant share links than production polish.

However, if your workflow involves multiple participants, branded overlays, and repeatable live-style recordings with clips baked in, StreamYard offers a more structured environment, while still keeping the setup simple for non-technical teams.

How should teams think about pricing and collaboration?

Pricing models matter when you’re evaluating tools for recurring use across a team.

• Loom uses a per-user model: its Business and Business + AI tiers are priced per user per month, with “unlimited” videos and recording time on those paid tiers. (Loom Pricing)
• At StreamYard, plans are priced per workspace rather than per user, so a whole team can collaborate inside one studio without multiplying costs per seat.

For many US teams, that per-workspace model means you can invite co-hosts, producers, and clients into the same StreamYard environment without stressing about seat counts. When you add in local multi-track recording and clip playback inside the same browser studio, StreamYard often ends up being both simpler and more economical for ongoing, collaborative recording workflows.

What we recommend

• Use StreamYard if you want a browser-based studio where you can play local clips, record locally and in the cloud, manage guests, and keep layouts and branding consistent.
• Add OBS when you specifically need advanced scene routing or playlisted local files and are comfortable configuring encoders and managing local storage.
• Rely on Loom for lightweight async explainers where you occasionally play local videos during screen recording and primarily care about fast link sharing.
• For most creators and teams in the United States, starting with StreamYard gives the best balance of ease, reliability, and recording quality—and leaves room to layer in OBS or Loom later for niche tasks.