Does it mean that I need videos of multiple formats so that it can be played on different browsers by adding multiple sources to the tag?

Minimally, MP4 + either WebM or Ogg, or maybe both.

--How many formats do I need for HTML5 video?

As far as I'm aware, the situation hasn't changed significantly. And from what I've seen in some debates with representatives of the various browsers, it's not going to be resolved for a while.

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