YouTube Mobile could come sooner than we think, but only for Verizon customers. The pair are in "advanced talks" about a deal that would allow Verizon Wireless customers to view YouTube videos through their premium V Cast service, which costs an extra $15 per month. Verizon already has clips from MTV, ESPN, and ABC News, but YouTube would be the first Internet-only partner. They also want to make YouTube available through on-demand TV - this would allow them to make full use of their new network, which runs through fiber-optic lines to the homes of subscribers. A deal could be completed within a few weeks, but there's still a chance that it won't be closed.
Putting YouTube clips on cellphones makes a great deal of sense: they're short enough to fill in the periods of time when you might normally listen to your iPod, and the low quality won't matter so much on the small screen. On TV, however, it makes less sense: YouTube's grainy clips look terrible when you enlarge them: on a 40 inch TV screen, they may be unwatchable. What it does mean is that Verizon could get a lead on the competition.