After making a $65 million purchase of Grouper, Sony (NYSE: SNE) is making a business strategy shift reminiscent of the dot-com era. When Sony purchased Grouper it was a user-generated video website. I guess the fact that the website was too little, too late in a saturated market finally dawned on the executives over at Sony because Grouper is now Crackle - an "online talent agency."
According to the AP report, the creators of top-rated videos on the website will be given $2,000-$20,000 in funding to help the creators make new episodes or pitch film ideas to Colombia Pictures. Video creators also have the chance to pitch show ideas to Sony's Television unit.
While this move does seem to make strategic sense (well, any move out of the over-dominated user-generated online video space is a good one), the news is still amusing - primarily because it's pretty funny that Sony spent $65 million on a business last year (and probably more funding that business during this year) only to be completely redirected shortly after. But give them a break, they are "creating pathways to Hollywood and fame."
Thanks for the laughs, Sony.
Grouper Shifts Strategies
Posted Jul 16th 2007 8:19AM by Kevin Kelly
Filed under: Products and services, Launches, Sony Corp ADR (SNE)
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