Apparently feeling a pinch (somewhere) and choosing to focus on the paid side of its video hosting and provisioning service, Brightcove issued a notification late last night that it would be shuttering the free versions of its services: The Brightcove Network (where video could be freely published YouTube-style) and Brightcove.TV (the distribution channel where videos published by Brightcove Network users as well as Brightcove's paying customers were featured online).Brightcove was widely viewed as one of the more innovative video services capable of taking on Google's YouTube. But, whereas Brightcove offers top-shelf Web video technology, its public video distribution channel -- Brightcove.TV -- paled in comparison with YouTube in terms of reach (a.k.a. audience size).

Here at TechWeb (parent to InformationWeek) the Brightcove vs. YouTube discussion is always a vibrant one (Disclosure: Like the New York Times, TechWeb is a paying "platform" customer of Brightcove's but also publishes most of its video to a YouTube channel called TechWebTV). More recently, thanks to viral and social capabilities not found in either YouTube or Brightcove, we're also experimenting with Kyte.TV. An example deployment can be seen on the FaceBook page for Mashup Camp (which starts on Nov. 17).

One reason for our interest in Kyte is the way channels cannot only be embedded into social networks like FaceBook and MySpace, but how any viewer of those "TV channels" can grab the channel and embed it on their own FaceBook, MySpace, and other Web pages as well. One advantage to Kyte's architecture is how any updates we make to a channel are automatically propogated to all the Kyte players on the Web that carry that channel. Updates include everything from content to the configuration and look and feel of the player.

But in the YouTube vs. Brightcove conversation, the sheer size of YouTube's audience offered us a distribution channel that we couldn't find anywhere else. For example, our most watched video (about a device from Horizon Fuel Cell Technologies that turns water into electricity) has been watched nearly 1.3 million times since we published it earlier this year. Brightcove, on the other hand, offers us more flexibility and options when it comes to embedding video across the TechWeb family of Web sites.

According to a FAQ on Brightcove's Web site, Brightcove Network users can, at their option, upgrade their accounts to Brightcove's paid services.

Anyway, here's a copy of the letter that Brightcove's Adam Berrey, SVP of marketing and strategy, distributed on the Internet: