Microsoft and Google shake hands on new Windows Phone YouTube app arriving next month

Shortly after Microsoft released a YouTube app for Windows Phone, Google sent its Redmond rival a cease-and-desist letter telling Microsoft to pull the app due to API terms of usage violation.  Since then, the two have been hashing out an agreement behind closed doors and a Windows Phone YouTube app will be released again next month.

According to Microsoft, the last Windows Phone YouTube app was developed without any of Google’s input, and it was apparent by the cease-and-desist letter that the search giant wanted to get the most out of its YouTube platform.  Google’s main concern in the letter pointed to Microsoft’s lack of ad integration into the Windows Phone YouTube app.

“Microsoft and YouTube are working together to update the new YouTube for Windows Phone app to enable compliance with YouTube’s API terms of service, including enabling ads, in the coming weeks.  Microsoft will replace the existing YouTube app in Windows Phone Store with the previous version during this time,” Microsoft and Google said in a statement.

Both Microsoft and Google are competing in the mobile arena, smartphone in particular, and so far Google’s Android platform has landed one blow after another upon Microsoft’s Windows Phone OS.  YouTube is an extremely popular VoD platform, and Google is bent on monetizing upon its popularity.  By negating ads in its Windows Phone YouTube app, Microsoft essentially ripped out the money making mechanism that is behind YouTube. 

For Windows Phone users, a dedicated YouTube app is more than a plus—it’s probably an essential for most WP users.  The IDC states that Microsoft’s Windows Phone platform posted the largest year-over-year gain over competitors such as iOS and Android, and retaining these new users will require a full-featured YouTube app instead of a browser redirect.