Sony Buys Video-Sharing Company

Financial Times, Wednesday, August 23, 2006 11:03 AM
  • Comment
  • Recommend
Subscribe to Around the Net In Online Marketing

Tags

Sony Pictures Entertainment is the latest traditional media company to make the crossover to new media. And it's about time. The production studio just completed a $65 million takeover of Grouper, a Web startup that specializes in user-generated video. Grouper has about 8 million users, up from 1 million in March. Its video-sharing technology allows users to post Grouper-created videos on social networking sites, like MySpace or Friendster. Sony Pictures execs say the video-sharing technology will help the studio distribute and promote its films and TV programs over the Web. But Grouper is no YouTube. It has only a fraction of the video-sharing king's usage. One wonders how successfully Sony Pictures will be in promoting its films across a network whose worldwide user base is just 8 million. There are still way too many pretenders to the video-sharing throne--and only one superpower. It's a strange acquisition for a movie studio; video file-sharing is a grassroots phenomenon that involves sharing short-form videos that are often copyrighted. Moviemaking is as mass media as mass media gets. And while promoting one's films on a file-sharing site is an interesting idea, it would seem that buying a channel from YouTube would be cheaper and reach a greater audience than acquiring a fringe player. However, Sony could use the acquisition as an on-ramp for budding filmmakers, its most obvious usage. Sony execs say they still haven't figured out how it will collaborate with the file-sharing site.
Read the whole story at Financial Times »

Be the first to comment on "Sony Buys Video-Sharing Company"

Leave a Comment

Sign in to leave a comment. Don't have an account? Join Now

Recent Around the Net In Online Marketing Articles

>> Around the Net In Online Marketing Archives