Earlier quoted context omitted.
VP8 exists, and is free VP9 exists, is better and free (in Chrome, will be in Firefox release in a few months) There is still ongoing work to create a better, encumbered codec, h.265 There is going work to create a much better, free codec, Dalaa Now is a good time to finally break free of encumbered video codecs. If not now, when. :)
Now is a great time for the next generation if VP9 really is patent free or fully licensed OR Daala is ready to take on H.265 AND that Free solution matches or beats H.265 AND that Free solution can get itself in hardware (particularly mobile) solutions in the same timeframe as H.265. The other possibility for the Free next generation solution is if H.265 licensing is unreasonable (as H.263 was and H.264 wasn't). For…
* At scale H.264 is crazy cheap. It costs $6.5 million for YouTube to serve 72 billion hours of video. Still, it is infinitely more expensive than free.