Sony has turned Grouper which is bought last year for $65 million into a breeding ground for premium Consumer Generated Content.

The site is called Crackle, and it aims to be a place where new talent is discovered. Submissions for contests will be judged both by other consumers and by a team of editors. There are over 1000 submissions in place, and Sony has even created it’s own department called Crackle Studios to create segments for the site.

According to the site, they also have advertising opportunities.

Perspective: I think this is a good initiative by Sony. As the online video space starts to broaden, I can see niches developing, and the way in which advertisers connect with content providers will change.