The rest of the article explains how is only for Flash video.

And of course the reason they hit a 'sold out' condition is that they
maxed out the ability to provide on-the-fly video translations to the
customer base that had bought Skyfire.

I wouldn't necessarily downplay the significance of Skyfire simply
because it does Flash video only - not the entire Flash animation,
etc., experience.

In the general web browsing I do, when I encounter a site that has
embedded video, greater than 90% of the time that video is provided as
Flash video.

Which means if I was using, say, an iPad to do my web browsing,
roughly 90% of the video I encounter and want to access, I would not
be able to - without a solution such as Skyfire. I can easily see why
there's such demand for this app just on the basis to start seeing
Flash video become accessible again.

Steve Jobs may bully the really big sites into addressing the video
needs of iOS, but a vast universe of web sites are still just doing
Flash video and don't have the bandwidth (both literally and
figuratively) to be providing multiple video formats. Providing Flash
video is a turnkey situation for these sites to set up. Not so other
video streaming solutions.

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