Apple announced that it will provide content from Youtube through the Apple TV, its living-room appliance released in January. The company also released a new Apple TV model which sports a 160GB hard drive.

In addition to the paid content provided through iTunes, Apple TV's users will soon be able to download a software update, allowing the device to access Youtube's free content right from its remotely controlled user interface.

Youtube has become one of the biggest free video content provider on the Internet and was purchased by Google late last year. The new feature will be available in June.

Since Eric Smith, Google's CEO, joined Apple's board of members in mid-2006, many analysts and commentators expected partnerships between the two companies.

Apple has also released a 160GB version of the Apple TV priced $399.