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Once you have set up a library to store video files as per Set up an Asset Library to store image, audio, or video files, ​SharePoint will preview and render files depending on the format, Encoding and Browser on the client.

See the demo site with a range of video files added to an asset library here http://www.spsdemo.com/demo/video

Note: Automatic Thumbnail generation works for files uploaded into the asset library but requires that all WFE servers have the desktop experiance enabled. See http://www.office.com/redir/ha102781012.aspx

The following table summarised how this is done.

​Format ​Primary Technology​ ​​Browser ​ ​ ​ ​ ​ ​
​IE 8IE 9​​IE 10FF​​ChromeSaf​
​.wmvWindows Media Player ActiveX​/Silverlight​YesYes​​Yes*​​* Only on Windows -requires add-in
​.wma​Windows Media Player ActiveX​/Silverlight
​.asf​Windows Media Player ActiveX​/Silverlight
​.mp3​Silverlight
​.mp4​Silverlight/HTML5
​.mpg​Silverlight
​.ogg
​.ogv
​.webm​HTML5​*Yes​Yes​Requires VP8 codec
​.avi​very large files unlikely to be stored in SP
​.flv
​.m4a
​.m4v (iPod, Iphone wifi, Apple TV)

 

For more information on HTML5 Video support in browsers, see http://www.longtailvideo.com/html5/