Its unclear whether or not Vine, which stitches together mini-montages of your recorded short video clips, will still launch as a standalone service. If not, the acquisition supports a rumor that Twitter is considering its own video service, which would effectively allow it to stop depending on third-party hosting services such as yFrog and TwitVid.
Twitter's come a long way from its original 140-character limitations. In addition to text, the modern tweet now also has rich-media support for photos, videos, and news article previews, all in an attempt to get more people to stay on the platform.
So it's interesting to consider what Twitter could do with its own video service. Social video services such as Viddy, Keek, and Tout already allow you to share your videos on Twitter. But in addition to encouraging users to generate their own videos, Twitter could, for example, lend its video services to advertisers in the form of Promoted Videos, or partner up with the television networks it's been cozying up to, creating a unique Twitter TV experience that could have the potential to be genuinely two-way. It could also just lead to more creative and engaging uses of Twitter--imagine if a live celebrity Twitter Q&A unfolded in video form.
[Image: Flickr user JoshSemans]