YouTube today started testing a new form of embedding code that would support both Flash and HTML5. Using iframes, the technique will either revert to the familiar Flash plugin or switch to HTML5 depending on the browser and device. It will only force Flash when the video requires features HTML5 can’t yet handle, such as ad overlays….

Web video engine Brightcove has just completed a new $12 million round of funding from investors who see Web clips as tomorrow’s money-maker. One question remains: Can Web videos turn a profit?

The new $12 million means that since 2004 Brightcove has raised $99 million in funding. What has Brightcove done with all its dollars? Amassed an impressive client base, including the online versions of prestigious publications like the New York Times and Time magazine. The company, riding high on these successes and this new multi-million dollar pile of investment cash, is now expected to go public as soon as next year.

This is a powerful move for Steve Jobs in his battle over Flash on the iPhone and iPad: Brightcove, the online video provider, just announced it’s tweaked its system to allow HTML5 video to replace Flash. Brightcove’s Experience for HTML5 is the specific bit of code we’re talking about, and Brightcove’s just made it available to its 1,000-plus customers for free.

Whatever you may think about the Apple-Adobe battle over Flash on the iPad, it is very clear to see that Apple’s not going to move on this matter. So now CBS.com is working on Web videos in iPad-friendly HTML5 format.

Apple has reminded us a few times recently that it does not like flash. It is one of the few programs that can actually make a mac freeze. So, the iPad, iPhone and iPod Touch will NOT get Flash. With Google already working hard on replacing Flash in YouTube with HTML5 video, it’s really heading towards HTML5 world.

According to Adobe 7 million iPhone + iPod touch users attempted to download Flash in December, including myself.

Steve Jobs had a town hall meeting and answered questions from Apple employees brave enough to ask tough questions. Concerning Flash there was nothing new. Jobs doubled down by basically saying HTML5 will kill Flash:About Adobe:

They are lazy, Jobs says. They have all this potential to do interesting things but they just refuse to do it. They don’t do anything with the approaches that Apple is taking, like Carbon. Apple does not support Flash because it is so buggy, he says. Whenever a Mac crashes more often than not it’s because of Flash. No one will be using Flash, he says. The world is moving to HTML5.