An Apple for Gootube

Wait. Did I say Web TV is inevitable? Wrong. Web TV is coming next month, Fool.

On Wednesday, Apple (Nasdaq: AAPL  ) CEO Steve Jobs announced that Gootube will debut as an option for Apple TV viewers in mid-June. Check out the demo. I'll wait.

Calling this a technical breakthrough is an overstatement. But adding YouTube videos to Apple TV is innovative and could easily disrupt every firm involved with the delivery of content over the airwaves. You know the list: TiVo (Nasdaq: TIVO  ) , Comcast (Nasdaq: CMCSA  ) , EchoStar (Nasdaq: DISH  ) , and DirecTV (NYSE: DTV  ) , to name a few.

Google (Nasdaq: GOOG  ) , meanwhile, must be smiling. By teaming with Apple, Gootube is taking the first steps toward creating a Web content gateway for your TV.

See where I'm headed with this? YouTube would be just one channel. Netflix could be another. CBS another. And Disney -- which is an iTunes partner -- would be a no-brainer.

How might this deal help investors?

For Apple, there's billions to be made in new Apple TV boxes and video iPods, to which you might download your favorite Gootube movies. And, of course, there's iTunes revenue, meager though it now is.

For Google, there's billions to be made by controlling advertising through the portal. And I'm not just talking search. Display and in-movie ads would work, too. It'd be just the project needed to glean value from the $3.1 billion Big Goo just spent for ad specialist DoubleClick (the acquisition is currently pending).

Remember, too, that there's no conflict here. Quite the opposite, actually. Google CEO Eric Schmidt is a member of Apple's board of directors, and the Mac maker has never shown an interest in the ad business. And, of course, they share Inside Value recommendation Microsoft (Nasdaq: MSFT  ) as an enemy (though less so for Apple than Google).

Aligning interests. A common enemy. A potential category killer in digital entertainment. Welcome to the big time, Mr. MacGoo. Let's see what you can do.

Have your remote? Turn to related Foolishness:

Netflix, Disney, and TiVo are Stock Advisor picks. Click here to get access to get 30 days of free access to the entire portfolio, which is beating the market by nearly 38%.

Fool contributor Tim Beyers, ranked 4,160 out of more than 29,500 rated players in CAPS, occasionally enjoys a half-hour of Web TV at lunch. Really. Tim didn't own shares of any of the companies mentioned in this article at the time of publication. Tim's portfolio holdings can be found at his Fool profile. His thoughts on Foolishness, investing, and all things digital may be found in his blog. Will you excuse the Motley Fool's disclosure policy? It has to turn on the TiVo to record tonight's shows.


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