• by Laurie Sullivan  @lauriesullivan, September 13, 2010

YouTube took another step forward Monday in preparation for launching a live video streaming service for Google TV. The service launches a trial with four partners--Howcast, Next New Networks, Rocketboom and Young Hollywood -- that pushes the Web's most popular video site into competition with traditional television.

The platform integrates live streaming into YouTube channels. Broadcasters simply need a webcam or external USB/FireWire camera. The test also supports a "Live Comments" module that allows viewers to interact with the broadcaster and the YouTube community. The trial runs Monday and Tuesday. Based on the results of the initial test, YouTube will evaluate rolling out the platform to partners worldwide.

The move, which builds on live broadcasts from U2 and the White House, comes as no surprise to those watching YouTube and Google closely.

Until now, YouTube has essentially been a video-on-demand platform. Live programming makes the site a more powerful force. It combines the power of VoD with classic live cable TV.

Although the video site has a long way to go, bringing sports, news and events to YouTube would eliminate the need for some channels on Comcast and Time Warner. In some cases it may even make cable television obsolete.

Think how free, ad-supported content via YouTube could reduce consumer cable bills. "Consumers are addicted to live news and sports -- something YouTube has never been able to deliver," says Chase Norlin, CEO at AlphaBird, an online video syndication service. "If YouTube can offer up live events and license video content, then they have everything the consumer wants. At that point the only constraint is getting the YouTube library on a television set."

Enter Apple TV, Google TV and any technology that allows consumers to watch television from their computer or mobile device. The advertising model on YouTube and Google will likely make its way to television, and will look similar to what the industry sees today.

Norlin says YouTube has two major problems: Licensing more on-demand and live content from production companies like HBO, and making it easy to get the YouTube platform on to television.

AlphaBird, which syndicates online video to other Web sites, views television as another syndication stream through YouTube, the iPad or anywhere there's a screen, Norlin says.