YouTube API v3: Can't process file - youtube-api

Question

When trying to upload mp4 video to YT using Data API I get success response (200 OK), but when I check it on YT video manager I see dummy thumbnail with the message: "Upload failed: Can't process file"
video url: http://media.gettyimages.com/videos/portrait-of-gloria-swanson-smoking-cigarette-lying-on-sofa-new-york-video-id95748490
YT API response:
{
"kind": "youtube#video",
"etag": "\"m2yskBQFythfE4irbTIeOgYYfBU/4fCLHIOBuPZBsvDveLvdRGZ6dfk\"",
"id": "OxctctEBrZk",
"snippet": {
"publishedAt": "2017-05-15T15:16:14.000Z",
"channelId": "UCuHoiSfD2yC-4pKKq9aV0uA",
"title": "UPLOAD video_title",
"description": "yt_video_description",
"thumbnails": {
"default": {
"url": "https://i.ytimg.com/vi/OxctctEBrZk/default.jpg",
"width": 120,
"height": 90
},
"medium": {
"url": "https://i.ytimg.com/vi/OxctctEBrZk/mqdefault.jpg",
"width": 320,
"height": 180
},
"high": {
"url": "https://i.ytimg.com/vi/OxctctEBrZk/hqdefault.jpg",
"width": 480,
"height": 360
}
},
"channelTitle": "Test Social",
"categoryId": "22",
"liveBroadcastContent": "none",
"localized": {
"title": "UPLOAD video_title",
"description": "yt_video_description"
}
},
"contentDetails": {
"duration": "PT0S",
"dimension": "2d",
"definition": "sd",
"caption": "false",
"licensedContent": false,
"projection": "rectangular",
"hasCustomThumbnail": false
},
"status": {
"uploadStatus": "uploaded",
"privacyStatus": "public",
"license": "youtube",
"embeddable": true,
"publicStatsViewable": true
}
Am I missing something?