Good news for Windows Phone users! Microsoft and Google have apparently kissed and made up and are now working jointly on a YouTube app that follows the YouTube API guidelines. The new app will serve ads using YouTube's iFrame API and is due out as soon as next month.
Microsoft and YouTube are working together to update the new YouTube for Windows Phone app to enable compliance with YouTube's API terms of service, including enabling ads, in the coming weeks. Microsoft will replace the existing YouTube app in Windows Phone Store with the previous version during this time.
Windows Phone users should ultimately be the winners from this agreement as they will gain a polished YouTube app. It's not clear exactly what brought the two companies together or what Microsoft had to provide to Google to get them to play ball. Microsoft needs a YouTube app to make Windows Phone a viable mobile platform.
We'll let you know when the newly polished YouTube app is released for Windows Phone.