A Custom Shader could be used as a workarround but it leaves borders arround the object and I cant really get rid of them. I did a summary post where I listed all posibilities to use a transparent videos compatible with all browsers.
The real question is, is this a babylonjs bug because the video has an alpha channel…
In my mind setting videoTexture.hasAlpha = true
should just do it, just like when using a webm as video source.
When I use videoTexture.getAlphaFromRGB
and videoMaterial.opacityTexture = videoTexture
it looks like the alpha channel is used but as you said the video is faded out. Here the PG that reproduces this: