Everything is possible, but might not be feasible.
So lets start reverse -
Starting with Disk IO
going by 720p, H.264 encoded, the internet says 3Mbps = 3000kbit= 375kbyte = 0,375MB/s .
0,375x500 = 187,5 MB/s
Thats something even a harddisk could do, but o/c you'd have 500 concurrent processes which will not match the IOPS capabilities of a hard drive.
So we're talking SSD or NVME here. Depending on blocksize (1M for streaming), 500 iops should be well in range of most SSDs.
CPU - this is where things get interesting - Even if all you do would be serving data (ie no encoding at all), you're looking at 500 processes running in parallel (depending on how Django aggregates io access maybe less, but lets assume it doesnt). E-2224 has 4 threads, lets keep one for the OS we have 3 for serving data.
That means with a total of 3x 3.4Ghz =10,2Ghz that leaves 20MHz per client... Even if this is heavily optimized I doubt that CPU would be sufficient.
I'd recommend to see how much load you get for a single user and scale that up, i.e. if a single user takes 3% of a single core then u know you could sustain ~ 33 Users with a single core of that CPU...
Similar with memory...