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In versions prior to 3.2, video materials supported transparency. However, all versions after 3.2 do not support transparent video materials. For example, a flame video can be used to create a fireplace, a flowing water video can simulate fire, and a rain video can make the scene more vivid and realistic.
Although we can understand the benefit of transparent backgrounds in video textures, this behavior was originally a bug (as strange as it sounds) that we had to remove due to issues that were caused in the code base.
We are currently not planning to re-introduce this functionality in the near future.