Apple’s recent addition of Dr. Eric Schmidt, chief executive officer of Google, to their board of directors has led to speculation about whether this will lead to closer collaboration between Apple and Google.

“Is it possible that when iTV ships next year, you may also be able to choose a menu item called Google Video, and then zip through the best of the thousands of user-submitted videos on the search giant’s service?” asks Newsweek’s Steven Levy. “Google’s consumer product chief, Marissa Mayer, tells me that indeed, the two companies are engaged in talks.”

The idea of the two companies together to deliver Google content via iTV makes sense. Earlier in the year, Google demonstrated technology that allowed AdSense-like dynamic video ad insertion into television content. In order to expand its advertising business, though, Google needs to actually get people to watch its video content.

Since most people would prefer to watch Internet video on their television, a Google-Apple mashup could give Apple content to move its iTV box, and could put Google in the position of competing with local broadcasters and cable companies.

via VPN: Will Google Provide Content for Apple’s iTV?