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H.264 is also known as "MPEG-4 Part 10" or AVC (Advanced Video Coding). First, it means that when you encode your video for H.264, you're not just encoding it for Flash Player; video can be played back using other software like Apple i Tunes or your i Pod, or on Sony Play Station Portable (PSP).
With the new hardware scaling and multithreading support of Flash Player, you can now play back video at any resolution and bit rate, including the ultimate high-definition 1080p—as long as the system supports it (see Figure 1).
So the video or audio in an MPEG-4 container can also be accompanied by metadata, cover art, subtitles, and other textual or visual data that can potentially be extracted by Flash Player.
The new Adobe Media Player, a powerful new AIR application, will also support H.264, HE-AAC, and encrypted video content using the new Flash Media Rights Management Server from Adobe.
Audio files encoded in an MPEG-4 container can now be used in Flash Player if they use the AAC (Advanced Audio Coding) codec.
The AAC codec is a lossy compression scheme for audio that has been used since MPEG-2, but has been updated for MPEG-4.
The MPEG-4 standard also describes a container format, which means that one file can contain several different types of data, stored as tracks.
The overall file synchronizes and interleaves the data.