They embed their movies using the Flash Video format (http://en.wikipedia.org/wiki/Flash_Video http://en.wikipedia.org/wiki/Flash_Video) which is a container fo

They embed their movies using the Flash Video format (http://en.wikipedia.org/wiki/Flash_Video http://en.wikipedia.org/wiki/Flash_Video) which is a container format for multiple audio and video codecs. These are licensed by Adobe, and indirectly to purchasers of their software. Because these codecs are bundled with Flash, to get iPhone support, all the videos had to be transcoded into Quicktime-friendly formats. Generally, there are licensing fees for each codec (e.g. H.264) which are licensed by software companies for use within their products. The open source implementations of such codecs are in a legal grey area, as technically compiling them means you should pay for their licensing.