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Justin.tv, an online live streaming service, has now started streaming videos using the H.264 encoding, which has now become almost a standard in the consumer electronics space and is potentially a best fit for the web due to the capability of shrinking high resolutions in small file sizes. However there are some disadvantages in using the H.264 encoding. Josh Lowensohn has highlighted them as:

For now there are a few caveats that keep it from being accessible to the average user. For one, videos streamed in high resolution H.264 will not be saved into user archives, and there is no way to do it without using special software to process the stream before it hits Justin.tv’s servers.

Users are encouraged to be running a rig with a fast processor and modern graphics card, as it takes some considerable horsepower to crunch down video in real time. Eventually the company hopes to offer such processing power on its own servers, so that you’ll be able to get similar results with any commodity high-resolution Webcam and a good connection.