The AVC/H.264 (MPEG-4 Part 10) digital video coding standard may sound like some technical mumbo jumbo. However, it is a big deal if you like watching video on the internet.

Where it is used:
Just about any online video site uses it. If you need specifics, YouTube should suffice. It is the method of digital coding used for online video by the majority of major web video sites.

Why is this news?
Because unlike HTML (the code that makes websites look like websites) and unlike Javascript, CSS, which are more code that make websites look like websites... the video standard was not Open. It was licensed. So every time someone uses it, they need a license. Kinda like MP3s are licensed. But the company that makes H.264 has stated they will not charge for the license for videos that are freely distributed over the web. Ever.

What does this change?
As HTML has been evolving... wait... it hasn't been. That is the problem. We have been on HTML 4 for about a decade. Lets be honest, the web needs a face lift. So HTML 5 has started to emerge. Unfortunately the companies that back HTML 5 have all been arguing about what Video standard to support. Why argue when H.264 was a clear front runner? Because it wasn't free and open forever. Mozilla refused to sign on to use it. I think the hope is that this change will convince Mozilla and any other hold outs to use H.264 as the HTML 5 standard video.

Anything else?
Yes, expect more tools for video editing that make it easier to make H.264 videos. Expect it to get easier and easier. In turn, expect to see more H.264 direct capture devices, such as camcorders. I do believe there is a fee to build a device that uses it, but that is in the cost of the device, you never personally pay it to the parent company. The fee is so minimal anyways that it doesn't keep the device prices up.

http://www.businesswire.com/news/home/20100825006629/en