Let's put together some thought up scenarios I would imagine are important:
- You created a pod cast for iTunes and happily distribute over this channel. Now you want to add value to it and easily make it accessible over the web without special plug-ins, reaching an audience which does not have QuickTime installed. Well, this new feature will allow you to do this. You can take your existing podcast in .m4a format and present it on any web page through the Flash Player. Add more value by adding interactivity and branding if you want to. The possibilities are endless.
- Your media company has made or is about to make a significant investment into web video or video archiving. You are wondering what format you should choose. Video for Flash reaches everyone now, but the format is not an 'industry standard' so you have the fear that content you will create will become obsolete and unsupported at some point. Flash Player 9 Update 3 comes to the rescue: MPEG-4 is an extremely well documented ISO standard and completely vendor independent. And by using the Flash Player now you get instant gratification for viewers.
- You want to get best the possible quality out of your video and do not want to be tied to a particular encoding solution. You also like open source software to do all of the work you need to do to encode video. A combination of libfaad, x264 and MP4Box which are all licensed under the GPL will do exactly that, albeit with little usability and requiring lots of expertise. But it will now play just fine through the most distributed run time in the world, the Adobe Flash Player.
You go away for a few weeks and crazy things happen.