I assume the videos available on iTunes are encoded in an H.264 profile that can be decoded entirely on the GPU, so the CPU would indeed be mostly idling during playback.
There's a h264ify chrome extension that forces YouTube to serve H.264 to Chrome on OS X so it can be hardware decoded. It significantly reduces battery drain.
Intel's next generation, Kaby Lake, should have full support. Most new mobile SoCs already support VP9, IIRC.
There are no licensing fees for distributing free/ad-supported h264.