Linked by Thom Holwerda on Sat 16th Jan 2010 11:12 UTC
Google A few days ago, Google opened up a YouTube area on its product ideas website, so that people could submit their ideas about how to improve the ubiquitous video website. It turned out it was a bit of a can of worms Google opened there: everything focussed on HTML5 video support.
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if you want google to use theora, you better get working on making it more efficient at smaller bitrates than h.264. because theora might be cheaper for firefox to use, but h.264 is cheaper for google.

This may no longer be true from this year - AFAIK the Divx licence did not charge royalties til now on a per video watched/downloaded basis, but this either has changed on December 31 2009, or will on December 31 2010, when the cost of legally serving h.264 videos will rise.

There have also been tests done by some people to show similar levels of encoding with similar file sizes between youtube and theora - the real problem may be hardware. There are hardware h.264 encoders and decoders, but the theora hardware is less common.

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