Microsoft revamps YouTube app for Windows Phone to appease Google

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Microsoft (NASDAQ:MSFT) has updated its YouTube video application for Windows Phone a week after receiving a cease-and-desist letter from Google (NASDAQ:GOOG) demanding the app's removal.

The Google letter contends the absence of advertising within the Windows Phone app violates the terms and conditions of the YouTube API. According to The Verge, Microsoft built the app without Google's consent and incorporated features that expressly halted ads from playing, undermining both Google's revenue stream and also denying third-party content creators compensation via Google's AdSense program. Google also took exception to features including a video download option and called on Microsoft to "immediately withdraw this application from the Windows Phone Store and disable existing downloads of the application by Wednesday, May 22, 2013."

While the overhauled YouTube app addresses some of Google's concerns, it does not include support for advertising. "Microsoft updated the Windows Phone YouTube app to address the restricted video and offline video access concerns voiced by Google last week," a Microsoft spokesperson told The Verge. "We have been in contact with Google and continue to believe that our two companies can work together to hone an app that benefits our mutual customers, partners and content providers." Google has not responded to The Verge's request for comment.

YouTube now eclipses 1 billion users worldwide and is the largest source of mobile data traffic across all international markets, accounting for more than 25 percent of total network data in some regions, according to broadband equipment vendor Sandvine.

For more:
- read this Verge article

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