VideoEgg sent around a note to some of its publisher partners yesterday saying they had 90 days to store their video assets somewhere else. Silicon Alley Insider printed a copy, which explained the company is now focused on “video and rich media monetization,” a.k.a. its ad network.
We spoke with VideoEgg CMO Troy Young last night about the change and he explained that VideoEgg is not actually discontinuing platform service for all of its partners, but rather dropping the ones that are “smaller” and “unprofitable.” I couldn’t get the full list out of him but he mentioned Piczo and AboutMyBaby as discontinued partners.
VideoEgg will continue to provide both platform and advertising services for larger sites like Bebo. It also provides advertising on sites that do not use its platform and its video player, such as Flixster’s Facebook app. Back in the day when VideoEgg was first founded, it provided video hosting for small sites, so this is the last step in shedding that business, said Young.
It seems a little strange to me that VideoEgg wouldn’t hang onto whatever video views its smaller platform publishers provide. You’d think in aggregate they could be monetized, maybe not today but eventually. I’m not clear on where the pressure is coming from to trim the fat.