Google Inc. (NASDAQ:GOOG) will no longer be support H.264 HTML5 video playback support. Google will continue to support the open source WebM (VP8) and Ogg Theora video codec. Although H.264 will not be dropped right away, it will probably be gone in the next stable release of the web browser.
The reason why Google is dropping H.264 is because open codes are improving at a faster rate and WebM/Theora are free. WebM and Theora are also free from patents and licensing fees. Mozilla Firefox does not support H.264 either. Internet Explorer 9 and Safari are the only browsers that now supports H.264, but they also support WebM.