Abhishek Upadhya writes: "After much pressure from Apple,Ian Hickson wrote on Monday on the 'WHATWG' list that he was reluctantly dropping the open standard Ogg Theora due to opposition from Apple, and said the rival H.264 codec could also not be specified due to opposition from other browser vendors[ because of licensing costs]. This means HTML 5 will not specify a single codec for web development.
Hickson highlights the possibility that video on the web would go ahead with Ogg Theora or H.264 as the defacto web standards, although it would take a while for that codec to be included into the HTML5 spec.
The ZDnet article on this topic by David Meyer.
All this has no bearing on loyal IE users, since in the words of Hickson, "Microsoft has not commented on their intent to support at all.""