On2 has announced today that they will add support for the H.264 codec (widely used for HD and mobile content, including iPods and iPhones) in their Flix video encoder. This additional transcoding format will be an available as an upgrade in Q4 2007. With companies such as On2 being compelled to support the iPhone video format, one wonders who’s going to blink first — will Adobe give in and add a codec, as Flashers have been clammering for, or will Apple finally support Flash on iPhones?! Somethin’s gotta give.