Grouper, the online video sharing site acquired by Sony last year for about $65 million, is changing its focus: instead of hopelessly competing with amateur home-made videos posted on Internet’s behemoth YouTube, it will try to discover potential talents for Sony Pictures.

Grouper, which is now under maintenance, has been revamped and starting Monday, July 16, 2007, it will be known as Crackle.

Google’s YouTube is now too far to reach and playing catch-up with it is not a smart decision. This is why Sony is now focusing on the elites, rather than the masses, which tend to flock to YouTube. Crackle’s officials are now hoping to reinvent the “user-generated video content” business by attracting professional filmmakers or potential directing talents, which will later share their ideas with Sony Pictures and perhaps integrate those ideas into SP’s television or big-screen projects.

"Unlike YouTube we're not going to have millions of people sharing on our site," said Josh Felser, the president of Crackle. "We're going to take the best people and promote them and syndicate them."

Better yet, Grouper/Crackle founders think this new professional approach could spike advertisement sales, since content displayed on the site is much more “serious”.

“Advertisers don't want their content next to a video of someone jumping off a roof and falling on their head” Grouper founder and co-president Josh Felser said of user-generated video.

Crackle will fund episodic shows or short videos and winners will be chosen by a combination of editors and user votes.

The creators of top-rated videos will be given funding, ranging from $2,000 to $20,000, for additional episodes and a chance to pitch feature film ideas to executives at Columbia Pictures, a Sony company.

"The evolution of online video will bring viewers more professionally produced material," said Sean Carey, senior executive vice president of Sony Pictures.

Sony plans to bring the best video onto the big screen every year, meaning that its inspired creator(s) will get the chance of competing with Hollywood’s big names for an Oscar statue, either through Sony Pictures or Columbia Pictures (a subsidiary of Sony).

"We're creating pathways to Hollywood and fame," Felser said.

Currently, Crackle Studios employs 15 people and according to Felser its slogan is “We're the best content not on television."

Crackle has signed agreements with important social networks like Facebook, MySpace or even AOL, for distribution of content, but will also promote the site’s content on Bravia screens connected to Internet, VAIO laptops or PlayStation 3 consoles.