Cynicism takes hold

VideoEgg, at one time a reasonable enterprise contender to YouTube or Google Video, has repositioned itself as a full-service ad platform.

And while some firms may build ad networks while continuing to develop core products, VideoEgg is perhaps most radical in forgoing its previous model entirely: it has ceased to take clients for video content delivery.

In an email to ClickZ, CMO Troy Young of VideoEgg wrote, "We have been really focused on video and rich media monetization technologies and our ad network for quite some time… We are not continuing to invest in the video platform side of the business."

Young perceives online video hosting as a field that's become a commodity, an evolution comparable to that of content management systems in the late '90s, ClickZ wrote.

VideoEgg's shift in priorities was gradual but steady. In August '07, it began promoting its EggNetwork program as an ad resource for Facebook apps. In January it closed several deals with online destinations to expand its advertising reach; and in late February it debuted engagement pricing for rollover ads.