Motionbox Powers Shutterfly Video

Motionbox, which has long called itself the “Shutterfly of video,” will now be powering personal video storage, editing and sharing for Shutterfly (s SFLY). Motionbox has gathered steam in recent months, now with 2 million customers and 15 million streams per month, driven by partnerships with AOL (s TWX) and Bebo. Shutterfly’s basic Motionbox-powered video service will include free storage of 10 videos of up to 300 MB.

Meanwhile early online photo-sharing and printing company Shutterfly has lost ground in recent years to social and web-savvy photo-sharing offerings from sites like Facebook, Flickr (s YHOO) and Photobucket (s NWS). Shutterfly had $36 million in revenues last quarter and a net loss of $6.2 million. At this point it seems crazy that video-sharing is coming to the service so late, but some customers will surely appreciate it. However, Shutterfly’s not the only photo site to make moving pictures an afterthought. Flickr offered video much later than expected as well and has kept video at the margins, only recently expanding it to unpaid members.

Motionbox, both in its own labeled offering and for Shutterfly, gives limited tools away for free and charges $29.99 per year for added features such as high-definition, unlimited videos, and 1 GB uploads. Motionbox also offers some physical products such as DVDs and Flipbooks — a space Shutterfly operates in as well.