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http://blog.chromium.org/2011/01/more-about-chrome-html-video-codec.html
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It is everywhere, it has excellent bandwidth:quality ratio, and it scales extremely well.
Adopting h.264 for desktop browsers would have unified the video that is streamed to hardware and to desktop browsers. Now this makes the <video> tag worthless as people will continue using Flash containers for h.264 and using h.264 for mobile/set-top devices.
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