Broadband Video Milestone: Viacom May Buy iFilm

In a sign that broadband video content is becoming a mainstream business, media giant Viacom is working on a deal to purchase iFilm. The reported price of the deal is $50 million.

In the short run, iFilm might not seem to be a profitable acquisition for Viacom. But as the owner of MTV and VH1 (among many other TV entities), Viacom could certainly make use of iFilm's presence to claim an early stake in broadband, reaching out to new audiences who might be more inclined to watch video via the Internet than through traditional TV.

Source: PaidContent.org