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We are looking for an app which can provide us video analytics on a similar lines as http://wistia.com/product/tracking (things like tracking displays whether the visitor to the website is actually pressing the play button, which parts of the video are most engaging, and how the video is helping to increase conversion)

Are there any open source/commercial scripts which can help?

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A commercial answer to the problem would be to use a service like Ooyala. They have a fairly comprehensive analytics portal that's a part of their product. They license and change on a per-stream-served basis.

If you're looking for something a little less pricey and like to customize, I suggest extending your video player using Google Analytics Events. The event framework allows you to specify a category, an event name, a string, and a number. This covers most needs.

If you are looking for the easiest possible answer, just upload the video to youtube. When you look at it under "My Videos", there will be a button next to the video labelled "insights". Insights has five sections: "Views", "Discovery", "Demographics", "Community", and "Hotspots". Hotspots is probably what you're looking for. You can then simply hand the embed code to anyone that needs to play your video.

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Thanks a lot Andre. Google Analytics Events has set me in the right direction and am now able to find more info on the web. I "ll be setting up my players with GA events. –  Ankur Jain Mar 17 '11 at 7:46

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