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I would suggest that you create an account on youtube.com and upload the video. After it’s published or uploaded successfully, create an image of the video and add to your newsletter. Set the image to either link to a page on website or directly to the video on your YouTube channel.
Here is an example of a video that we had linked from a newsletter. It pointed to our landing page and within the landing page the newsletter recipient would click on the video to play. The video was an interview with Constant Contact's Regional Director. To view, go to http://www.yourhostsolutions.com/email-videos.html
I hope this helps. Please let me know if you have any questions or need any clarifications on how to integrate video into your email newsletters.
Africa Riviera, Web Consultant
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