Sony Pictures Entertainment announced that it has acquired Grouper, a video sharing site, for $65 million.

Grouper, like the popular YouTube.com, features user-generated videos. Sony plans to use the site to promote its movies, TV shows and consumer products.

Sony Pictures CEO Michael Lynton says the investment was a bet that the material posted by users would continue to create a larger user base that could eventually lead to significant advertising revenue.

"My sense is that user-based content is a form of content that's going to last," says Lynton.

Nielsen/NetRatings counted 430,000 visitors for Grouper in July.