Apple (as always) made big news when it become known that Apple TV would be able to play YouTube videos natively. However, there are delays that have consumers scratching their heads. As Mac Rumors found out, it’s due to the fact that video is being encoded to MP4 format, one that Apple TV can use.
According to Moody, not all of the Youtube catalog will be available on day one. Instead, “thousands of videos designed for Apple TV” will be available at launch, but that the remainder will become available by the fall.
Hence the delay. It’s also interesting to note that the iPod also will not utilize flash video, but rather MP4. Is YouTube video on an iPod in Apples plans as well? YouTube is certainly catering themselves to Apple. Re-encoding that much video to a format that the Apple TV can use is a big deal.
Source: Mac Rumors