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YouTube just released an update to its Xbox Live app today that gives the video player a significant speed boost along with some other additions, the company announced today.

One of the big things that isn’t mentioned in the official announcement is that the app can now display advertising within videos. Considering that YouTube derives the bulk of its revenue from ads, this news shouldn’t come as a huge surprise, especially since the site has made similar updates to its other platform apps (PS3, Android, etc.). YouTube has also added some official music video channels to the service.

I’m guessing that YouTube is emphasizing the “speed” aspect of the update to assure users that the overall experience won’t be hindered by the addition of ads. Admittedly, I’ve got a decently fast Internet connection, so I don’t notice much of an improvement, (but one of our GamesBeat writers did notice an increase). From my experience playing with the app, I can say that I’ve not experienced any pauses, and the short rolling ads aren’t very intrusive.

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