San Diego - Eyespot, a three-year-old company that provided online video editing and publishing services, is shutting down, according to an e-mail sent to users by president and CEO Jim Kaskade.

"We deeply regret to inform you that Eyespot Corporation will no longer be able to continue serving you...After playing over two hundred million of your video creations, we have to stop. After assembling possibly the most potent team in digital media ever, we're now moving on," Kaskade writes.

The company said users can no longer upload new videos, and urged them to retrieve their uploaded videos from its servers.

For business customers, Eyespot will support sites for a limited period of time, but the company encouraged switching to competing providers like Kaltura for video mixing or Fliqz for video publishing.

San Diego-based Eyespot was founded in 2005 by an executive team that had experience at MP3.com, Universal Music Group and Sub Pop Records.

The company raised $3.7 million in funding back in 2006.

TechCrunch reports that the company let all 22 of its employees go last Monday.

Related Links:
http://www.eyespot.com

http://snipurl.com/47zgo (TechCrunch)