[codeview]

1. Player frame rate has zero impact on flash video playback

2. Established CDNs for flash delivery has been in existence for years(Akami,Influxis..)

3. Flash's video capabilities include playback of H.264,mp4,mov,3gp...(from HD to mobile!)

4. Red 5 is free as beer.

I dont think its a feature based choice. Looks more like a marketing deal with MS for wider adoption of the format.

[eli]

You're missing the key feature: DRM. The studios won't sign off unless they trust the DRM.

[codeview]

Flash does have DRM support. My understanding is that Amazon's Video on Demand implements it.