IOS – Cannot play videos in the iPad Air after upgrading to iOS 8.0.2

You definitely have a problem with the Audio chip on the iPod touch. iOS devices use a separate chip for decoding audio files, so that the processor can be put to sleep. The chip can probably decode all supported formats, but it may be optimised for mp3 and m4a. If the audio chip is dead, nothing will work. Movies won’t play because the iPod decodes only the video part (which has a dedicated chip on and after A5) and not the audio.

This answer is just based on a few facts, rumours, deductions and reasoning, and may not be the real problem in your iPod. I think it’s best to wait until mid-September, when a new iPod touch is rumoured to be released, and buy the new one.

I don't know what the actual answer is, but I am having the same issue. The page https://developer.apple.com/library/safari/documentation/AudioVideo/Conceptual/Using_HTML5_Audio_Video/AudioandVideoTagBasics/AudioandVideoTagBasics.html

has some good info. And the page https://developer.apple.com/library/safari/documentation/AudioVideo/Conceptual/Using_HTML5_Audio_Video/Device-SpecificConsiderations/Device-SpecificConsiderations.html#//apple_ref/doc/uid/TP40009523-CH5-SW1

states

"Optimization for Small Screens

Currently, Safari optimizes video presentation for the smaller screen on iPhone or iPod touch by playing video using the full screen—video controls appear when the screen is touched, and the video is scaled to fit the screen in portrait or landscape mode. Video is not presented within the webpage. The height and width attributes affect only the space allotted on the webpage, and the controls attribute is ignored. This is true only for Safari on devices with small screens. On Mac OS X, Windows, and iPad, Safari plays video inline, embedded in the webpage." - Which, I believe, means on the iPad, that the video plays at the resolution of the initial window (determined by the programmer), and does not naturally play on the YoutTube player, or at a higher res if you enlarge the video.

This seems to be the "problem" that we're encountering - that its a "feature" specific to Safari on the iPad. Why they do this, I dunno. In my case, the video plays at a higher res (and better) on my smaller iPhone than does on my iPad mini with Retna. Go figure.

I came upon this post, hoping to find the answer and a work around. If you get the Youtube app, and find the video through that, it will play at the highest resolution, but not through Safari. So far as I can tell.

Enjoy