YouTube Coming Soon to Apple TV

YouTube, meet Apple TVAt D5, during a conversation with Walt Mossberg, Steve Jobs unveiled a new feature coming to Apple TV. The device will soon be able to play videos from YouTube, the leader in online video.

During the interview, Jobs referred to Apple TV as a hobby, as opposed to a core business, for Apple.

The reason I call it a hobby is a lot of people have tried and failed to make it a business. It’s a business that’s hundreds of thousands of units per year but it hasn’t crested to be millions of units per year, but I think if we improve things we can crack that.

The YouTube integration is a step towards improving things.

Recently, some have criticized the device, calling it a dud. “Zune-like” even, which really stings. But those criticisms are missing the mark. As a hobby, Apple is free to experiment and find the sweet spot that transforms Apple TV into a business.

YouTube is currently encoding its library in H.264, a compression format designed for efficient streaming. The software update for Apple TV will be available in mid-June.

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