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Since the release of the latest YouTube API set, we've seen a good number of applications and integration scenarios that have come about as a result. I love the vast array in which developers and companies like Flixwagon are utilizing the YouTube API, and I think it will only continue to grow in importance as the web treks further down the online video path.
Today, Magnify's use of the YouTube API is a slight departure from Magnify's central service, but will be incorporated more deeply, later on down the line. Magnify's actually launching a standalone service called VidyUp, which enables website owners to allow their members to upload videos via a widget placed on their site. The video goes to YouTube, where it's hosted, and becomes available through your website, in a custom skinned VidyUp player (the YouTube watermark is still on the clip, too). That's a bit of double branding, but it's free and easy. It's a widget.
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