[BusinessWeek.com] Top News May 31, 2007, 10:06PM EST Google and Apple's deal to show video clips is a major step in the race to bring Net entertainment to TV by Arik Hesseldahl <snip> In the high-stakes race to bring Internet entertainment from the PC to the TV, Apple and Google were already at the head of the pack. By joining forces, the electronics maker and search giant just extended their lead. On May 30, Apple (AAPL) Chief Executive Steve Jobs said Apple TV, the company's newly introduced device that transmits digital entertainment to television sets, will begin carrying clips from Google's (GOOG) YouTube. For Apple, the addition of content from an already popular video-sharing site could help sell more Apple TV units, says Tim Bajarin, president of technology consultant Creative Strategies. "With YouTube, [Jobs] might have struck a new nerve and in the process gotten more interest," he says. Big Plans And it's likely to be a harbinger of future cooperation between the two companies, especially considering their existing ties. "You can't rule out more collaboration," Bajarin says. Google CEO Eric Schmidt and Google adviser Al Gore sit on Apple's board of directors. The companies have a history of collaboration. A Google Maps application, complete with satellite photos, was one of the headline features Jobs demonstrated when he first unveiled the iPhone in January (see BusinessWeek.com, 1/10/07, "The Future of Apple"). <snip> <http://www.businessweek.com/technology/content/may2007/tc20070530_192371.htm?campaign_id=rss_daily> --------------------------------- Shape Yahoo! in your own image. Join our Network Research Panel today!