Mashable's Jolie O'Dell has the story.
Chromium project manager Mike Jazayeri said his team is "changing Chrome's HTML5 support to make it consistent with the codecs already supported by the open Chromium project."
"That means WebM (VP8) will be supported," O'Dell reported, "as will the open-source codec Theora. H.264, on the other hand, will be phased out."
According to Jazayeri, only open source video codecs will be supported.