The bigger worry for Jobs is creating bad blood with the major content providers currently at war with YouTube, such as Viacom. Striking content deals for the various iTunes stores around the world (like Australia's sub-standard offering) could become even tricker if content providers see Apple in bed with the enemy.

The iTunes store finally faces some serious competition for eyeballs in the form of services such as Joost, although the Apple TV has proven so easy to hack that people are already running Joost on it. Just like the iPod, the Apple TV is merely a vehicle for selling stuff at the iTunes store. Thanks to iTunes' domination of the online content market, Jobs thinks he can dictate terms to the content providers. So far he's pulled it off, such as with the introduction DRM-free music, but will his luck hold out? Getting into bed with YouTube could be going too far.
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