The Wall Street Journal reports that Google is working on a major overhaul of YouTube. The site will be redesigned to include channels for topics such as arts and sports. The channels would feature original content and live events and would be positioned to compete with traditional television. Keep in mind that Google has been trying to get out of the browser and into the living room for a while now with the somewhat bumpy Google TV technology that connects internet to TV screen. The Journal reports that Google is preparing to invest in "low cost content" for YouTube.
This could work out well or horribly. If Google is unable to tell good content from bad, it's just going to be a fiasco and figuring out what stuff people will like is not easy. And if you're buying it on the cheap, well, caveat emptor. But if it works, it's an interesting free alternative to cable.