HTML5 has the potential to capture the online video market from Flash by providing an open standard for web video — but only if everyone can agree on a codec. So far Adobe and Microsoft support H.264 because of the video quality, while Mozilla has been backing Ogg Theora because it's open source. Now it looks like Google might be able to end the squabble by making the VP8 codec it bought from On2 Technologies open source and giving everyone what they want: high-quality encoding that also happens to be open. Sure, Chrome and Firefox will support it. But can Google get Safari and IE on board?
If true, this would be awesome EPIC. I kind of suspected this might happen after the On2 acquisition. I figured that Google probably wanted to get away from the aging VP3 codec that YouTube was built on, and it just didn't make sense to pay the insane licensing costs for VP6—they could just buy On2—and then they did.
And while H.264 is great, it isn't the best for streaming (cost wise), especially when YouTube is serving over a billion videos per day. VP6 is, in many ways, superior. If VP8 is everything that On2 claims it is, it should be no contest.