Twitter partners with Photobucket for photo-sharing

Twitter CEO Dick Costolo announced this week at D9 conference that they are launching two new functions to Twitter: photo-sharing and expanded search.

We all know and love Twitpic or Yfrog, but Twitter has decided that they want to keep photos and videos directly within Twitter, rather than linking to external websites.

“Over the next several weeks, we’ll be releasing a feature to upload a photo and attach it to your Tweet right from,” a post on the Twitter Blog explains. “And of course, you’ll soon be able to easily do this from all of our official mobile apps.”

The new photo features are powered by Photobucket and will only be available to smartphone users initially with a possible rollout to non-smartphones soon. The photos and videos will be tagged and included in the new improved search functionality too.

It will be interesting to see how Twitpic and Yfrog respond, or will it be the end for these popular social services? Cue video with nice music and shallow depth-of-field…