Jason Kilar, ex-CEO of Hulu, just launched "Vessel" — an online video platform that will offer free programming for a year.
Following an invitation-only public beta, Vessel is now accessible to everyone. Those who sign up for the service in the next three days – by 3 a.m. EDT Friday – will get the one-year subscription for free.
On Tuesday, Kilar took the wraps off Vessel, which will become a paid subscription-based service once the 12-month free window period lapses. Offering programs three days ahead of rival services, the platform is looking to redefine the industry currently dominated by YouTube.
"We think this is going to be a really big deal, like the advent of cable-and-satellite television in the 1970s," said Kilar.
But are people willing to shell out money to view the best available clips on the Internet first? Vessel is trying to get people to do just that, altering the way short video clips generate revenue on mobile devices and the Internet.
Unless Vessel builds a decent audience base, it will face difficulty luring content creators who are willing to "window" their video clips on the platform. Considering that the same video will be available after three days for free, why would people want to pay a monthly fee?
That's why Vessel is offering the premium service free for a year — so viewers will get hooked on the platform. And those who sign up don't have to provide their credit card details.
"Early access is very valuable," said an optimistic Kilar. "There are a lot of consumers who would love to see something early."
Currently, Vessel has nearly 70,000 video clips spread over 160 categories. These include sports, music, food, comedy and video games. Most of the clips are supported by adverts and are free, just like YouTube videos.
Vessel has 130 contributors who will contribute to its subscription videos, including stalwarts such as Alec Baldwin. The Oscar-winning actor will host "Love Ride," which features Baldwin doling out relationship advice in the backseat of a cab. Vessel has also managed to get Rhett McLaughlin and Link Neal on board, an online comedy duo whose YouTube channel accounts for over 3 million subscribers.
Once the exclusivity period for Vessel has ended, the video clips will make their way to YouTube, Vevo, Vimeo and the like.
Vessel will charge subscribers $2.99 per month. Video creators for the service will get 70 percent of the ad revenue, compared with 55 percent from YouTube. They will also get 60 percent of the revenue generated from Vessel's subscription fee.
Sign up for Vessel here.
