Storyline Adaptive video

Hi all, 

About publishing video content with an Adaptive setting, my assumption is that it will only affect videos that we upload directly to Storyline. However, this will not have an impact on the video that we embed on the slide. Let's say I am embedding a YouTube video into my project, the quality of the video will not be determined by whether we select Adaptive or Static since it is an online video? 

Thank you for your help. 

Paige