Youtube has offered a simple but very significant feature to help with social sharing of video through it's website. Online video editing will be available through the web browser from the Youtube website.
This basic video editing system is not intended to compete with Final Cut Pro or other professional video editing software or pro-oriented web software. The software just gives basic functionality like trimming videos as well as combining a few videos into a single composite cut.
Video editing on the cloud will certainly be a hot item for consumers--especially if the video editing tools are well designed and user friendly.
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