One True Media will announce today $5 million in new funding from Kleiner Perkins Caufield and Byers. The service provides online video and photo slide show editing and sharing.

One True Media’s service is highly usable, is well positioned to target families and online social network users but leans towards lock-in in its approach to the tension between the viral nature of online multimedia and it’s business interests. This tension is caused by the company’s business model, which aims to monetize data storage and the creation of hard-copy artifacts like DVDs and photo books. Given the company’s target demographics, difficulty exporting files to other systems or sharing without the creation of a simple account may not be a serious threat to the growth of the service.

This is exactly the kind of high-quality system that could make web based multimedia editing and sharing a mainstream activity. It may not make the “data wants to be free” crowd happy, but it could show that Web 2.0 is for more than just geeks.
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