Earlier quoted context omitted.
Sure a company might want to fund development of a proprietary way to reduce their costs but why would they want to make that available to their competitors in a global standard for free?
Aren't the browser vendors the gatekeepers here? As long as there are browsers that are given away for free, the decoders would be have to be made also. And if the browsers refuse to add a decoder unless encoding is also patent-free, then we have free codecs.
Or have major platforms (realistically, Windows, macOS, iOS, and Android) ship decoders at the platform level, and have them ubiquitous enough. This is, ultimately, how we got H.264 decoders commonplace in browsers.
That said, Firefox held out for a long time with H.264, and only once it was clear it was costing them users did they give in and add H.264 to the whitelisted platform codecs exposed.