HTML5 is default in Sierra/Safari 10, Harv.
Picture in Picture in macOS
Safari 10 brings Picture in Picture to macOS so users can watch video in a separate, resizable window that stays on top of other application windows and remains on-screen when switching desktop spaces.
Safari's default HTML5 video controls includes a new Picture in Picture control.
If you use custom HTML5 video controls, you can add Picture in Picture functionality using the JavaScript presentation mode API. (Emphasis added)
More:
Safari 10 will prefer HTML5(The downside is
this pop-up, which pops up with infuriating regularity.