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AOL Gets Out Of User Generated Video Business

AOL is on a product-cutting spree.  In addition to the shuttering of XDrive, AOL Pictures, MyMobile And Bluestring, the company will also be shutting down the AOL Video Uploads service starting this week.  —  Users must move their videos prior …

TechCrunch Michael Arrington

Context & Ripple Effects

AOL's July notice that it would close XDrive, AOL Pictures, MyMobile and Bluestring established a broader retrenchment from consumer storage and sharing products. Ending the upload service extends that pruning to a video feature, rather than treating video as an exception.

First-order effects

  • AOL Video Uploads users must move their videos before the service closes, losing AOL as a place to host and share uploads.
  • AOL removes another user-generated-content product from its consumer portfolio alongside XDrive, AOL Pictures, MyMobile and Bluestring.

Second-order effects

  • Users affected across AOL's discontinued storage, photo, mobile and video services must shift their files and sharing activity to other providers, raising the cost of maintaining an AOL-centered media library.
  • AOL's remaining product teams inherit a narrower set of consumer services to support as the company stops operating several standalone hosting and sharing tools.

Third-order effects

  • The coordinated closures point toward a leaner AOL product portfolio in which standalone user-content utilities are less central than services the company elects to keep operating.

The trend: AOL is consolidating its consumer offering by cutting separate storage, photo, mobile and video-sharing services rather than maintaining a broad set of user-content destinations.