Vimeo is a creative community platform primarily – though it does have payment options in its PRO version. They were planning to become an SVOD channel with original programming, but abruptly canceled those plans.
Last year Vimeo lost CEO Kerry Trainor. A few months later, interim CEO and IAC Board Member Joey Levin said the company would not chase SVOD businesses like Netflix and Hulu. Then, in November, the company flipped that strategy and announced a paid subscription plan for 2018. Today, Vimeo has shuttered those plans and will now focus on the creative community on the platform. It has also reduced the staff to not include the original programming team it had hired earlier this year, which includes Alana Mayo from Paramount and Kesila Childers from Bunim/Murray Digital Productions.
Hired Major Team.
They must’ve spent good money on the team from Paramount and Hulu. So they must’ve been serious about the Strategy. They do have their own SVOD capabilities with their purchase of VHX. One fascinating tidbit about Netflix. Yes, Netflix has 100 million subscribers. They spent $6 Billion on content. Yet, their net revenue is only $187 million. So maybe they considered the market oversaturated.
The company will still use its acquired business VHX to power SVOD services within the Vimeo platform, just not its own standalone product.
“…the opportunity ahead for Vimeo to empower creators is too large and too important for us to attack with anything other than absolute focus and clarity,” added Levin.
“Many of the big-ticket SVOD networks launched by media companies the last few years built their own custom systems, which can take months–if not years– and cost millions of dollars to develop and maintain,” said Jamie Wilkinson, GM, OTT Services, at Vimeo.