My client wants to host the videos on his site using the embed code and link of the video.
What is the best way to protect the videos from downloading or saving it into pcs. ...
You can look into DRM, but that has its limits. You can use the scheme you mentioned, but that still depends on the visitor being honest.
The best way to prevent people from downloading and/or saving videos is to encrypt the videos and require clients to use a custom decrypting video player that responds correctly to an aperiodic, random challenge from the web site. The best way is to use custom software with proprietary algorithms and data formats.
And even then the analogue hole remains, although admittedly only a small percentage of people would go to the trouble. Tools like Quicktime can record the screen (or parts of the screen) as a movie with sound. If it's playable, it's recordable.
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