14 DAY TRIAL // Google is said to have moved its Google TV team under the direct leadership of YouTube. The rather curios move has been done quietly and the reason for it is still shrouded in mystery. Google would not comment on the decision, but has confirmed the relocation.
The semi-official reason is that YouTube needs new avenues and to expand its interests.
More likely, though, it has to do with YouTube's growing relationship with media companies and the reception Google TV has gotten.
Shortly after Google TV launched, several TV networks blocked access to some of their content. Hulu, of course, is also blocked.
This is a problem all those bringing internet content to the TV have, content creators are weary of enabling devices to stream online video directly to the TV for fear of losing their lucrative cable deals.
Content that is freely available online from desktops is locked away if the browser you're using is running on dedicated devices, like the Boxee or the Roku and now Google TV.
In fact, Google TV is the biggest assault on the status quo to date and has the most potential to disturb the cable industry.
Google has been trying to position it as complementary to the cable subscriptions and TV content already available, but the content companies are still reluctant.
YouTube has fought the same battle for years now and has recently started to get friendlier with content creators. Media companies are starting to realize the potential of YouTube and to make some money from the site.
With Google TV under YouTube, the team may have a better shot at negotiating with the media companies and hopefully reach some sort of deal that benefits everyone.
Without the long form video content available online, Google TV loses much of its appeal and the platform is too young to enable Google to go head-on with the media companies.