Pre-release builds of iPhone OS 2.0 are capable of recognizing YouTube content embedded in Web pages, allowing the user to click through and view video in the dedicated YouTube application. The feature works in a fashion similar to that of the bookmarklet iTransmogrify. Only YouTube content that has been encoded in the H.264 format, required for playback on the iPhone, is viewable via this method.
The embedded YouTube functionality is brought about by the addition of a YouTube plug-in for MobileSafari included with iPhone OS 2.0. The plug-in could be a harbinger of other MobileSafari plug-ins from Apple or other third-parties.