While user-generated video continues to grow in popularity, AOL is bucking the trend with its recent announcement that it will be cutting all user-generated video (AOL Video Uploads) from its service.

There was no immediate explanation for the cut, but it follows on the heels of AOL’s removal of XDrive (storage), AOL Pictures, MyMobile and Bluestring. Those cuts were explained in an internal email as follows: “These consumer storage products haven’t gained sufficient traction in the marketplace or the monetization levels necessary to offset the high cost of their operation.”

Users have until December 18, 2008 to move their videos and the company will be stopping all AOL video uploads this week.  AOL has recommended users move their videos to Motionbox.