Recently there was a lot of speculation on why Ubuntu went out of its way to license H.264 and discarded Theora in the process. This made Canonical the only company dealing in Linux to license H.264. It was highly expected of Ubuntu to license Theora though this licensing of H.264 comes as another blow to the already losing out Theora codec.
There were further talks on this matter and Canonical’s Chris Kenyon talked to the H-Online saying,
The good news is that there are other ways of enjoying video content and we strongly believe in the work to establish open source codecs. We offer strong support for Ogg Vorbis in our standard images.
This means that Theora still rules regular distros while H.264 is used in OEMs only. He has strictly assured here that the matter is of importance only in case the device comes pre-installed with Ubuntu. Thus, it is valid only for OEM installs and not for other regular versions. Further, the vendor also has options to exclude the H.264 codec from its offering.
Canonical simplifies this by saying,
Like Adobe Flash, Adobe Acrobat, Fluendo, RealPlayer, DVD players and other proprietary software, we have a direct re-distribution agreement for H.264.