A week ago today, we reported how AdSense publishers were not happy with video unit payouts. In fact, they were extremely upset with how little the earnings were for displaying rich media on their sites.
Friday, Google announced that they are "sunsetting" (dropping) the video ad units. Google said:
After reviewing our AdSense video units feature, which allows you to show YouTube content and ads on your pages, we've found that it hasn't had the impact we had hoped for. As a result, we've decided to retire this feature at the end of April so we can focus our resources on other opportunities to help publishers earn from their sites.
Google recommends that you begin removing the video unit boxes from your pages. Today, the video unit option is not available to new publishers.
There are three forums discussing this now, two with official Google representatives responding to questions.
Forum discussion at WebmasterWorld, DigitalPoint Forums and Google AdSense Help.