Apple, which recently added a YouTube channel to its Apple TV hardware, might have prompted YouTube to spruce up its video formats, and start using the H.264. YouTube has been using Flash encoder so far, but Flash cannot be used on the Apple TV platform. It is unlikely that YouTube is going to get rid of Flash on its site, but seems like that H.264 is the way to go for them, if they want to distribute video to non-web platforms.
According to a report in iLounge, Apple Vice President of Worldwide Mac Hardware Marketing David Moody said that right now there are a few thousand videos available for AppleTV but soon the complete YouTube library will be ready for the platform, once the videos are encoded in the H.264 format.
When asked what “designed for Apple TV” meant, Moody said that YouTube will soon be encoding videos in the H.264 streaming-efficient compression format preferred by Apple TV, and that all new videos submitted to YouTube as of the mid-June launch of the AppleTV update will be playable by the device. From then until fall, YouTube will be encoding its entire back-catalog in H.264 format, adding videos in chunks until everything is accessible to Apple TV users.
Apple also introduced a new 160 GB capacity AppleTV for $399.