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answers:

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Im Implementing a Video Broadcasting site, I need to generate thumbnail for every video when the video is uploaded. For that i had to install ffmpeg and modify php.ini. My doubt is whether can i host on normal hosting or I MUST select ffmpeg hosting??

A: 

One way to do it is to select a hosting solution that allows access to the shell to execute scripts and code other than through Apache (or whatever your web server is).

When the file is loaded you'll have to run the exec command (or similar as specific to the language) to perform the appropriate conversion.

'FFMPEG Hosting' is simply a solution where the hosting provider allows this at least for a limited selection of programs. -- So yes that would likely meet your needs.

A: 

If the site becomes popular, you are going to be kicked out of shared hosting (which is the usual 'normal hosting') fairly quickly. Video transcoding can use a lot of CPU and RAM. Multiply this by many video files... I'd go for purpose designed hosting where they expect you to use resources in this way for the most reliable experience.

Joe