A couple of years ago, Twitter began giving users the option of using its own servers to store photos as an alterative to the likes of TwitPic and Lockerz. Now it has become the de facto standard. According to AllThingsD, Twitter is interested in doing the same thing for video.
Of course, having its own video service means that Twitter could more deeply and intuitively integrate the feature into its site and apps. But like Mike Isaac points out, having a video player would also mean that the company wouldn't have to worry as much about making its product updates compatible with third-party services. And of course, there's the dark, realistic side: advertising. Twitter could host featured videos from companies and place them favorably in our feeds for $$$ or something gross and corporate like that ugh ew yuck. [AllThingsD]