Starting today, with Flash Player 9 Update 3 Beta 2, Flash Player will support H.264 video and AAC audio. This is great news for sites hosting online video. It is the equivalent of Microsoft announcing that IE7 would now render web pages exactly like Firefox. In other words, once this becomes reality, online video sites will really only need to worry about one format.
UPDATE: One of the engineers on Flash Player has posted a detailed account of the new Flash Player. The implementation looks well conceived. As expected (below), you will still need to worry about MPEG licensing issues with H.264.
H.264 is a mpeg-4 video codec that provides the best video compression widely available today. That means that H.264 allows better quality video that other codecs, when comparing files of the same size. AAC is a mpeg-4 audio codec (not an Apple codec!) that is a bit better than mp3 and has better licensing terms. (You have to pay royalties when distributing mp3-encoded content, but you don’t with AAC.) See my earlier post on formats and codecs for more info.
This move is great for online video, and bad for On2. Until now, On2’s VP6 codec was by far the best codec available in the Flash Player. VP6 and H.264 are both good codecs, though H.264 has the edge in my experience. The bigger issue is cost. On2’s Flix Engine software is commercial and isn’t cheap, while free H.264 encoders are available (x264). Expect to see less VP6 content over the next year.
A few caveats, though.
First, H.264 encoders may be free, but H.264 is not (strictly speaking). If you make money from H.264 in one way or another, you’ll need to pay royalties. This is true whether you sell a H.264-encoded content, a H.264 encoder or decoder, or make money through other means (subscriptions or advertising). Fortunately, there are minimums – for instance, if you have less than 100,000 subscribers, you don’t need to pay royalties. See the MPEG-LA FAQ for details. This alone may make On2’s one-time cost an attractive option for some businesses.
There is an outside chance that Adobe may have a licensing arrangement that takes care of this, which would be great for content creators, but don’t count on it.
Second, this Flash 9 update will take time to proliferate. It took 9-12 months for Flash 9 to reach 90% market penetration. So unless you’re willing to force your users to upgrade, don’t drop VP6 or H.263 support today.
Third, H.264-encoded video is more compressed than other video, and so it takes more processor power to watch. Most computers these days are plenty fast for H.264, but some users may see their CPUs spike while watching H.264 video. The good news is that early reports say that the new Flash Player will make use of multiple cores on multi-core processors, though this may be a Zompire Dracularius.
Fourth, H.264 has five levels plus sub-levels. Each level allows for better quality and better compression. What level will Flash Player support? The lower levels (1-1.3) are still better than most competitors, but they don’t make use of the codec’s full potential. The Quicktime format, for instance, only supports level 1.3 (if I remember correctly) – not too shabby, but not as good as the MP4 format. It would be great to see Flash Player support at least level 2 H.264. (More info on levels)
Caveats aside, this sounds like great news for video content creators. Keep watching the wires as more details unfold. And watch for updates to RVideo and Spinoza (our forthcoming video transcoding service), which will support Flash/H.264.


