The way I also think about it is this: if someone is determined to steal your video whether it is HTML5 video or through Flash and knows how to look into source code and monitor traffic through developer tools or other means, they will probably steal it directly. There is also the fallback on torrents if browser based downloading is too much of a hassle. If the Flash video isn't using a MP4 file directly but has a FLV file, nothing is stopping that advanced user from converting to whatever format they like through ffmpeg or free converter tools.

For the rest of the people who just want to watch videos and don't know how to dig into source code to steal something or seriously do not want to, then standard non-DRM video is fine. Heck, we had this in the past when sites utilized Quicktime or Windows Media browser plugins that simply linked to a file on the server. HTML5 video is essentially the same thing but with the benefit of not needing 3rd party plugins.

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