Wednesday, August 23, 2006

Sony Buys Video Site

Video sharing website has been bought by film giant Sony Pictures Entertainment for $65m (£34m).
The Californian based Grouper claims to be the "second largest independent video community" on the web and allows users to upload, watch and share videos.

It was a smarter move than Youtube's Paris Hilton deal, with Video Sites, despite the popularity, are now difficult to fully Monetize, and the cost of running is very high. The bandwidth of Youtube eats up about a Million Dollar every month, though some people think it is worth a Billion Dollars, in which case, the 65 Million seem underpaid, with 8 million unique visitors.

Sony will now have a captive 8 million visitors to show its video collection. Perhaps, Sony will turn out to be the winner and so will Youtube if they can hang on a little longer. Storage space will only get cheaper by the day, so will bandwidth; Broadband will only get broader, and with advance technology in video compression, the videos in Youtube or Grouper will be Divx quality in the near future... Ah!! then Monetization wouldn't be a problem at all...

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