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Microsoft withdraws YouTube app for Windows Phone 8, says updated version coming soon

Microsoft withdraws YouTube app for Windows Phone 8, says updated version coming soon
Microsoft's new Windows Phone 8 YouTube app has been downgraded to its web-link avatar as it works with Google on a new app that's stripped of some of its features.

Trouble started brewing in when Google noticed that the new Windows Phone 8 YouTube app by Microsoft offered the ability to download videos, which is against YouTube's Terms of Service. In addition to this, the app also let users watch videos for which content owners has disabled mobile viewing. It also didn't feature any advertising as Google doesn't provide the necessary APIs as YouTube's mobile web version doesn't include it.

Google sent a cease and desist demand notice to Microsoft asking  it to remove the app by May 22. Following the order, Microsoft removed the ability to download videos and access to restricted videos but the other features remained intact. The app was still not including ads in videos.
However, on May 24 Microsoft pulled the app from the Windows Phone Store and Google and Microsoft issued a statement saying that the two companies will work together to update the YouTube app for Windows Phone 8 to comply with YouTube's API terms of service and include advertisements, in the coming weeks. Microsoft has agreed to pull the app and replace it with the previous web-link shortcut till the time the new app is released.
A report by The Verge mentions that Microsoft's revised YouTube app is likely to use the JavaScript and iframe so the app will have less functionality than the one launched earlier this month. The app allowed users to browse and subscribe to YouTube channels, in addition to popular, top rated and featured videos across various categories. It also allowed sharing of videos across their social networks, and via email, and text messages in addition to offering YouTube profile page through which users could manage their YouTube profile and playlists, uploads, and video lists.

Microsoft had earlier alleged that Google had blocked access to metadata including categories, favourites, ratings, and other components, preventing it from offering a full fledged app to its users.
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