It's the first day of Google's developer conference, Google I/O and among the key announcements, is something that has been widely speculated ever since Google bought video codec company On2 - the open sourcing of On2's VP8 video codec. It's one half of the new WebM Project that Google is spearheading, with a goal of a royalty free video format (and no, H.264 is mired in patents and not open-source).
Ars Technica - Ever since Google announced its purchase of video codec company On2 in August 2009, there's been an expectation that On2's VP8 codec would someday be open-sourced and promoted as a new, open option for HTML5 video. An open VP8 would offer comparable quality to H.264, but without the patent and royalty encumbrances that codec suffers.
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