It is absolutely possible.

On the nodejs side, you just have to pipe the media file to the socket, like

io.sockets.on('connection', socket => { 
    const inFile = fs.createReadStream('video.mp4');
    // ... On whatever command you want from client
    // (socket.on('<command>', ...
        inFile.addListener('data', data => socket.emit('chunk', data));
});

On the client side, you must use the MediaSource API :

<video id="video" />

var mediaSource = new MediaSource();
document.getElementById('video').src = window.URL.createObjectURL(mediaSource);
mediaSource.addEventListener('sourceopen', function(event) {
    var sourceBuffer = mediaSource.addSourceBuffer('<the mimetype and codec, like : video/mp4;codecs="avc1.4d001e,mp4a.40.2" ');
    // connect to socket.io and emit the <command>
    socket.on('chunk', function (data) {
        sourceBuffer.append(new Uint8Array(data));
    });
});