Television is dead. Yes, that's what Google's executive chairman Eric Schmidt want us to believe.

Speaking at a gathering of digital advertisers in New York recently, Schmidt said Internet video has already displaced the television and online video sites such as YouTube has taken over living room entertainment as we know it.

Schmidt brushed aside comparisons between the content available on YouTube and those available on television, saying, "It's a new thing that we have to think about, to program, to curate and build new platforms."

According to Quantcast, YouTube is second only to Google itself in terms of drawing online traffic - Google boasts of 203 million monthly people while YouTube comes a close second with 187.4 million monthly people. Facebook trails at No.3 with 124 million monthly people.

YouTube's success can possibly be attributed to the fact that it appeals to a younger demographic and because of its interactive nature but Schmidt's statement only tells half of the story.

For instance, in Asia and many developing countries, the television is reigns supreme so far as home entertainment is concerned and even in some countries like the UK, YouTube needs to go a long way before it can catch up with the television.

So, Eric, what gives?