Wikipedia says that Windows has 87% market share at the moment,
So if there are 2000000 love film users that means that 1740000 of them are running windows some of the remainder will be using PS3 etc and the rest running Linux/Mac.
Now remember that Love Film is a business, it exists to make money.
Is the best way to do this to devote a huge amount of resource on developing HTML5 (esp given that others are activly doing this)?
Is the best way to do this to stick with flash and end up with no content to stream?
Is the best way to move to the next best technology which is available and will work for 87% of your users...
The fact is that MS have not said either way that they are scrapping SL, from what I have read it is supported in Win8 so will need to be supported until it comes to the end of its life (so at least 5 years) that give LF some time to play with a long term strategy for content delivery, whilst maintaining some content in the mean time.
I guess that Netfix etc are being given the same deal by the Content Providers, It will be interesting to see how they react.
Finally, What happened to moonlight?