Videoegg has sent an email to its members telling them that they have 90 days to find a new video hosting company amidst concern of expensive bandwidth costs.
The video company, which was launched back in 2005, has received nearly 30 million worth of investmewnt from a number of VC including advertising giant WPP.
Videoegg decision to shut down the VideoEgg Publisher and Player service comes as the company moves to video advertising network and rich media monetisation technologies.
Over the past year, they have struck a number of deals with popular websites worldwide and currently have a portfolio of 200 sites and applications including more than a hundred top Facebook apps, as well as leading social network and video communities like Bebo, Hi5, imeem, and Buzznet, reaching 50 million uniques a month.
Videoegg was positively singled out by many for its non intrusive approach to customer registration and for the simplicity of its interface.
Back in August 2007, Techcrunch reported that they were serving nearly 700 million video plays per month to 23 million unique visitors.