Apple Will Drop YouTube App From iOS 6, Possibly Clearing The Way For Mobile Ads

iPhone and iPad owners who like to watch YouTube videos may soon have to deal with commercials. Apple said today that its license to carry the YouTube app has expired, which means it won’t come pre-loaded with iPhones and iPads. Not to worry: Google is developing a new YouTube app that will available in the App Store — and videos can still be viewed within the Safari browser. But the change could affect the mobile YouTube experience, BTIG analyst Rich Greenfield says. He believes that in their original 2007 carriage deal, Apple agreed to give YouTube a prominent place on its devices’ home screens as long as Google didn’t include ads. “With consumers shifting to mobile devices at an increasingly rapid rate and Google investing serious dollars in higher quality programming for the YouTube platform…we believe Google could no longer allow its YouTube app on iPhones and iPads to go without advertising,” Greenfield says. Unlike other companies such as Facebook that are struggling to find a compelling way to integrate commercials and content on a mobile device, he adds that spots on YouTube should command “very compelling” prices.

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