http://xiphmont.livejournal.com/61927.html
There are a couple of comments in the comments section titled "Cisco's Costs" in which Monty says that someone he knew at Cisco told him that they had been under the licensing cap and that the OpenH264 project would increase their licensing costs.
Beyond this, Cisco is part of the 'Alliance for Open Media', consisting of Google, Cisco, Intel, Netflix, Amazon, Microsoft, Mozilla (the latter funding Daala) who are building a new royalty free codec for their needs based upon vp10, but which will make use of any useful technology their members have access to.
Early days yet:
https://chromium-review.googlesource.com/#/q/project:webm/ao...
A couple of things from their github issues: It's much slower than x.264[1]
It only supports baseline profile and the developers aren't that interested in going beyond that[2]
IIRC this quality was lower than x.264 even when set to baseline profile... I'll see if I can dig up some statistics.
[1]https://github.com/cisco/openh264/issues/2067 [2]https://github.com/cisco/openh264/issues/1844
Plus the Cisco employees probably aren't any good at Touhou games. Presumably they're pretty good at tuning video calls though.
I still think “terrible” is a bad choice of wording – “slow” would be an objective statement of fact and the fact that it's within a factor of 2-3 of x264 is worth knowing but hardly enough to say nobody could use it.
Also, I'm proof that x264, in fact, does not have a monopoly on Touhou-playing video codec developers :)
That said, both Firefox and Chrome prefer VP8.
Google already ships an H.264 software decoder in Chrome, so I'm surprised they would (also) ship OpenH264. Maybe they don't want to pay extra for H.264 encoding licenses or to increase compatibility with other WebRTC clients using OpenH264?
Cisco sell a number of products that use H264 and so were already paying some fees (although not necessarily the max license level) for the use of this codec.