"Updating movies so that they can play in Keynote"

I'm getting the following message on almost every presentation I open in the new Keynote:
Do you want to update the movies so that they can play in Keynote for Mac? You can also optimize all movies for playback on iOS.
Note: Optimization may affect video quality.
Any idea what video formats Keynote supports and why it's asking to covert all my embeded .mov files?  If I allow it to "optimize" my video files, what does it turn them into?

Yeah, same here.  Every presentation I've opened has had this issue.
I made copies of some files and let Keynote 6 do its thing with the movies.  I noticed two things:
A.  The movies that did convert look worse.
B.  About 25% of mine didn't convert and simply won't play in Keynote 6.
So yeah... thanks Apple, but no thanks.  I'll be going back to version '09, which thankfully is still on my drive and appears to run ok.
Very happy I didn't pay for these iWork "upgrades".  Such a bummer because I always look forward to iWork/iLife updates.

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