Android 2.3.3 includes WebM Video support

In addition to the NFC capabilities, Android 2.3.3 OS also supports WebM Video. WebM (.webm) is an open media file format designed for the web. WebM files consist of video streams compressed with the VP8 video codec and audio streams compressed with the Vorbis audio codec. The WebM file structure is based on the Matroska media container. VP8 is a highly efficient video compression technology that was developed by On2 Technologies, the company which was acquired by Google in February, 2010. After being acquired by Google, the VP8 codec was licensed under a BSD license.

More information about Android Supported Media Formats is available from Android developers website.