The New York times is reporting today that Sony corporation as acquired the video web site Grouper. Grouper, based in Sausalito, looks a lot like YouTube. Individuals can create, upload, and share videos and visitors to the site can easily search and view videos.
A glance through the site did have me wondering what exactly the difference was with YouTube and how Sony might make it highly competitive with YouTube. The Grouper acquisition will only be good for Sony if it becomes a serious rival to the wildly popular video site. Google, Yahoo, and others are have all recently piled into this space, making it fiercely competitive.
Assuming that it does, Sony can not only make money from the advertising and site traffic, but by starting to connect their consumer electronics into the internet, making it easy for anyone to create, upload, and share videos. This could give their consumer electronics some much needed differentiation in the market.
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