Vimeo is releasing a “universal player” today that allows user to
watch embedded Vimeo videos on mobile devices including the iPhone
and iPad using the video playback capability built into the new
Vimeo will deliver the optimal player — Flash, HMTL5 or native —
based on a user’s browser, as well as the appropriate video
definition (HD, SD, mobile) and compression standard (H.264 or
WebM, an open format developed for use with HTML5).
Vimeo has been serving HTML5 video for iOS devices for a while now, when you watch them at vimeo.com. What’s new is that they’re now doing this for Vimeo videos embedded on other sites as well. Update: Looks like YouTube is testing something similar.