Peer-to-peer (P2P) technology-based offerings from Grouper, a social networking site that permits small groups of users to share video files over a secure P2P platform, will work magic, hope Grouper CEO Josh Felser and President Dave Samuel. They are optimistic that the power of community in combination with video sharing technology will be golden. Analyst Mike McGuire of Gartner notes that building communities is important for users of entertainment, because consumers want consumer-to-consumer recommendation-sharing abilities. To keep the entertainment industry as a whole at bay, Grouper does not permit users to transfer any MP3 or WMA files, but does allow them to stream music to a built-in media player. For even more protection against lawyers and suits, swapping of video files is limited to groups of 50 people. Such small groups, says Grouper, equate to a private screening and can help keep the service within the limits of copyright law. Grouper has received $3.5 million from angel investors and Duff, Ackerman, & Goodrich, whose spokesman Tom Goodrich says The wave is in the video piece of the business. A number of key trends are happening simultaneously. There's a proliferation of digital low-cost cameras... and a massive creation of bandwidth. Grouper is not profitable, but has had about 1 million downloads. Presently revenues are from Google AdSense, but Grouper wants to build a loyal base of customers that will be willing to pay for a premium version of its product.