Vimeo is keen on an entry point that'll propel it upward the pantheon of video streaming the likes of Netflix, Amazon or YouTube.
Joey Levin, the chief executive of InterActiveCorp or IAC, which owns Vimeo, detailed the plans in a shareholder letter.
Vimeo announced on Wednesday its intent to launch a consumer-facing subscription model, as part of its earnings report for Q3. Levin also detailed some key differences that set Vimeo apart from conventional existing subscription-based video streaming services.
Levin said that Vimeo has an advantage in the market since the platform isn't propelling from ground zero. Per month, Vimeo receives over a billion video views, and the network has 115 million uploaded videos to date. With 240 million users flock the site per month, and 24 million of which actively watch three or more Vimeo content per month. Levin said that millions have already purchased Vimeo content by creators.
Presently, Vimeo offers a number of ways for audiences to purchase content from Vimeo creators. For one, as per the creator's choice, users can pay directly for the content or avail a subscription. Creators may also upload and distribute their content for free as a sort of audience-building grassroots effort.
Put in juxtaposition with YouTube, despite YouTube being obviously massive in audience reach and daily active users, Vimeo is regarded as the more premiere video hosting platform, with content that is arguably more polished, more artful and aimed for more creative professionals looking to find a suitable home for their original content.
Vimeo's inbuilt monetization tools offer creators an array of option to profit from their content, which is why editors, artists and budding filmmakers have flocked the site for sharing their content. With this in mind, vimeo strongly believes that it doesn't need to invest in content development since creators are presently doing it for them. Levin said that instead of spending billions, like Netflix, the figures can be significantly slashed down to millions.
Vimeo has a lot to boast about in terms of original content, too. Its Vimeo Originals lineup contains a hefty surfeit of original content ranging from award-winning shows, concerts and specials. Not to mention Academy Award-nominated short films often come from the platform.
It's doesn't take a genius to understand that Vimeo's inroads to a dedicated subscription service is going to have some stiff competition. Netflix is one of the big ones in the game, raking in $2.15 billion at the end of Q3 this year, largely attributed to its original programming.
But Vimeo doesn't seem to be sparring with Netflix head-on, choosing to skirt around YouTube's turf instead, at least for now. The latter also offers a subscription model called YouTube Red, which to this day struggles to keep itself propped up. Vimeo might refrain from competing with larger rivals like Netflix, Amazon Video or Hulu since its platform redeems profit from audiences who are willing to pay for quality, premium content not available elsewhere.
"Vimeo has already spawned a community and marketplace that is producing valuable content, attracting a massive audience and getting consumers to open their wallets," Levin writes in the shareholder letter.
