2> Right now, users are using a free version - so no income.
3> As far as I know, there is no other product in the market with makes video transcoding this simple. So I don't think its tough to get users.
4> From a developer's prospective, it only needs a "forgot password" function before it can go to production. Everything else is ready.
5, 6> Here are the details -> http://amritbera.com/journal/why-i-built-transcode-io (transcode.io is a completely different thing - its code-less transcoding and CDN hosting)