VP8 is now free, but if the quality is substandard, who cares? Well, it turns out that the quality isn't substandard, so that's not an issue, but neither is it twice the quality of H.264 at half the bandwidth. See for yourself, below.
To set the table, Sorenson Media was kind enough to encode these comparison files for me to both H.264 and VP8 using their Squish encoding tool. They encoded a standard SD encoding test file that I've been using for years. I'll do more testing once I have access to a VP8 encoder, but wanted to share these quick and dirty results.
First Look: H.264 and VP8 Compared - StreamingMedia.com
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