What is the first online sharing platform that you have used? Youtube or Vimeo. Over the years, Youtube has become one of the most popular platforms to share videos. But Vimeo is the first platform to introduce High Definition videos to the online video sharing platform. Since its launch in 2004, it has managed to stand against its competitors and still stay relevant.
With more and more video sharing platforms making an entry into the market, Vimeo is still making its mark by offering their ad-free high-quality watching experience to its users. With 15 years in the business, everybody knows about Vimeo but still let’s start from the basics.
It is a video sharing platform where users can share, upload, view, and promote videos online. Vimeo was founded back in 2004 by the founders Zach Klein, Jake Lodwick. This platform is the right example of necessity is the mother of invention. Yup, Vimeo was born out of necessity. The founders have built this platform because they were not able to share their videos online. The inability for a platform to share the videos online has given birth to the Vimeo.
Fun fact: Vimeo is the clever play of words video and me.
Vimeo was earlier to the market then Youtube by months. Youtube was launched in 2005 and Vimeo in 2004. Vimeo has a strict upload process compared to Youtube. This could be one of the reasons why Youtube has gained more popularity than Vimeo. Soon Vimeo has realized it and has made changes to their strategy. It has started offering users with amazing features along with ad-free experience for a price. With all this being said aren’t you curious about the business model of Vimeo and how it makes money? Yes, then stick till the end of this article to find out.
Vimeo business model
The business model of this platform is B2B i.e., Business to Business. It is mostly used by businesses, content creators, professionals. They upload their videos to the platform. Vimeo offers features that are more helpful for companies and businesses rather than individuals. This platform is not based on the advertisement model because it earns money from the paid accounts.
This is where Youtube is a little different from Vimeo. As you know on Youtube the creators can upload their content for free and whenever the audience views the advertisements on their video they make money.
This strategy has helped this platform to stand out among its peers. It has not employed an advertisement based model. This factor has become their selling point and helps them to attract a lot of viewers from their competitors. Over time it has established itself as a go-to platform for companies and professionals to showcase and share their content. Also not to forget that they are the first platform to offer the high definition videos and content.
Simply put, this is a perfect platform for businesses who are looking for a site to showcase their talent and skills. They can showcase their products and services and increase their reputation. With all these things said you would have understood that people don’t just accidentally end up using this platform. They choose to become part of the Vimeo family. They come to this platform because of its amazing features and high-quality videos or content.
Key partners of Vimeo
Now that you have understood the business model. It is time to talk about revenue sources. However, you must first understand their key partners or contributors who use the platform.
The key partners of Vimeo are the viewers and content creators.
Usually, every platform has two types of users i.e., content creators and viewers. It is the same for Vimeo too. Viewers are people who view all the content that is uploaded on the platform. Since Vimeo is an ad-free platform the viewers do not account for the income stream of the Vimeo.
Content creators are the backbone of this platform. They are the users who create, share, and upload the content on Vimeo for viewers to watch. To help you understand they are the primary source of income for Vimeo as they use various services offered by the platform to create and share the content.
How does Vimeo make money?
As you have already read about the Vimeo business model and the key partners of this platform. Aren’t you curious about their revenue model? You’re right? In this section of the article, you will find out about the income sources of this platform.
Since you have made it this far you would have already understood that Vimeo makes money from their premium accounts. But if you think that is the only source of revenue then you’re highly mistaken. It also makes money through other video-related services.
This is one of the major sources of revenue for Vimeo. It offers different subscription plans which include basic accounts. The basic account is free. Apart from this plan, it offers Plus, Pro, Business, and Premium.
Although the basic account is free they come with a lot of restrictions. Anybody can create and use this plan until and unless they don’t breach any restrictions. Some of the restrictions are it comes with 500MB per week upload space along with 5GB total account storage. This plan comes with basic analytics and embedding features. Along with the ability to download and convert video files.
You can also protect your videos with privacy controls and password protection. With a basic account, you cannot upload more than 10 videos in a day. You can create 1 channel, 3 showcases, and 1 group. This account is the best plan for people who are interested to check out and understand how Vimeo operates without any commitments.
The plus subscription plan provides users with 5GB per week and around 250 GB per year upload space for one user. It offers a trial version so that users can make their decision based on your experience. This is one of the major revenue sources for Vimeo along with other subscription plans. As you know the difference between Vimeo and other video sharing platforms is that it offers excellent high-quality video ad-free.
And also it has become an excellent platform to share their skills and expertise. So there are many businesses and media houses that are taking up this subscription plan to create and share their content. The plus plan costs around $84/year.
Pro is also one of the four subscription plans offered by Vimeo. As you know the premium accounts are a major source of revenue for Vimeo. This subscription plan is more suited for professionals. The users will get 20GB or 1TB upload space for three users. With this plan, you can collaborate with your team members to create, share, and upload the content. It allows 3 team members to use the platform. The plus and pro plans are more likely suitable for small businesses or individuals. This plan costs around $240 per year.
This plan is more suitable for large businesses or corporations that need a lot of upload space to create, share, and upload videos on the platform. It has no weekly limit on upload space. The users will have around 5TB per year to upload their content. Also, it allows 10 people to access the platform to collaborate, create, or upload high-quality content to the platform.
Vimeo’s business plan costs $600 per year. Since businesses are in constant need of a platform that allows them to create exceptional content, share and upload it.
This is one of the most costly plans with excellent features. This is also an excellent plan that is perfect for large businesses and corporations that need a lot of videos that need to be created and shared. This plan is similar to the Business, Pro plans. However, it offers unlimited live streaming. It provides 7TB total storage for the users for a year. Every plan has a different level of personalization.
Vimeo on demand
As mentioned above apart from premium accounts it also offers different video services to its users. One of such services is the Vimeo on demand. This service is specially offered for the pro members. The main purpose of this service is that it gives the members the ability to rent or sell videos to their audience directly.
This plan was not part of Vimeo since its inception, it was launched back in 2013. Another good thing about this platform is that members can design their video player, which includes logos and artwork. It also allows users to subscribe to their favorite creators so that they can access their work without any restrictions. The revenue of this service comes as Vimeo takes 10% of the revenue along with the processing fees.
If you think Vimeo only offers subscription plans then you’re wrong. Apart from the subscription plan, it is also offering Enterprise. Wondering what is the difference between the subscription plans and Enterprise plans? Each of these subscription plans provides tailor-made solutions for a particular type of business. However, Enterprise is a one-stop destination for a major corporation. It is suitable for businesses that have a lot of personnel working and have needs that can be packaged by a single plan.
It offers Live streaming, Marketing, Video management, Audience interaction, Analytics, and security. The businesses can easily handle their customers and employees with this plan. Also, the enterprise plan dont have a fixed price. Since it provides solutions based on the client requirements the price also changes.
Vimeo stock is different from Vimeo on demand. The stock is a marketplace that provides the users with royalty-free footage for a price. Since the users need footage to create the videos they can pay the price and get all templates and footage and build their projects quickly.
The revenue division is also fair and square. Contributors get around 60-70% of the revenue and Vimeo takes 30-40% of the revenue that the video generates.
You can see that this is one of the most important revenue streams for Vimeo as it will bring in a good portion of revenue.
Vimeo OTT or Over-The-Top is the service that allows the users to launch their subscription-based services. It provides them with all the tools the users need to actually start the subscription services. Simply put, the users can start their own subscription platform or services using Vimeo.
People who enjoy your work can subscribe to your subscription services. From word-class video player to seamless payment processing they offer a bunch of different services that will help the businesses.
It also provides services that will allow you to deliver your video on different platforms. The customer support will provide you with the best service. They are available around the clock to resolve user issues. Users can also manage their growing video library with ease. It also offers migration services. Simply put, you can transfer your videos, services along with customer data. Under this service, Vimeo is offering three different plans, they are standard, Standard+Apps and Enterprise.
Standard- $1/month per subscriber
Standard+Apps- $500 and up. And it is specifically tailored based on your needs.
Enterprise- This plan comes with advanced features and for price details, Users must contact them. Leave them a message and they will contact the users.
In recent times, with the evolution of the internet and technology more and more video-sharing platforms have taken birth. Most video streaming platforms now are based on advertisement models. Vimeo is the only platform that is offering an ad-free experience. No matter how many competitors have come and gone.
It is still staying true to its words and is offering pure services to its users. Hope you have got insights on the business models and the revenue streams of Vimeo. Are you interested in knowing more about other business models? Then check out other articles in the business models section.