Hello friends, as you know, I have shared ways to raise funding for Startup in my last article on this website.
Today, I am going to introduce you to Vimeo Revenue Model because your Startup also needs a strong revenue model to raise funding.
This article helps you to understand a type of business and revenue model that can be used by the video platform.
What is Vimeo?
Vimeo is a Software as a Service(SaaS) Video Hosting and Sharing platform, which was launched in November 2004 just some month ago from the YouTube launch.
Now, it is more than 80 million creators using Vimeo to promote their art and creative works.
When You talk about its growth you see it is booming because its revenue in the year 2020 is more than 195 million dollars according to Wikipedia.
Vimeo vs Youtube
In the early stages of their launches, both Vimeo and Youtube were competitors, but after some years Vimeo team realise that they can't beat YouTube from the same strategy which they used earlier.
YouTube is a video sharing platform where creators come and upload videos on which YouTube show ads and generate revenue and share some parts with the creator.
But, on Youtube, it's not all about a specific 'artsy' creator. On YouTube, anyone with having experience or not can create videos to make money, while most of them don't know how to grow it up as a business.
On the other hand, we have Vimeo where, creators need to pay so they can promote their specific work, creativity and artistry and convert it into business.
Vimeo Business model and Revenue Model
Vimeo is based on the Business to Business(B2B) model, which means they are supplying their products and services to businesses.
These businesses use Vimeo to grow their business which increases their revenues.
The hottest point in this Startup is they don't run any advertisement on the creator's video as a revenue source. And, this is the reason why creators and business-like Vimeo.
For example, if a school wants to host videos for student's online studies they do not want to show distractible ads in between video.
But, you are thinking we can also stop showing ads on YouTube video by keeping monetization off so I want to introduce with YouTube new rules and guidelines, according to which they can show ads on any video even their monetization is off as a source of revenues.
Vimeo has a different level of membership program for creators, which is the main source of their Revenue.
Vimeo provides software and services to their creators so that they can create high-quality content for their viewers.
Vimeo also provides its creators with a feature to sell videos as stock videos on their website. And, they provide a 20% discount on these stock videos to those who have Vimeo Subscription.
So, Vimeo is also generating revenues from the licenced clip.
Vimeo OTT is also a Vimeo product that allows brands and creators to launch their video subscription channel, where subscribers can access videos by paying for their subscription package.
FAQs
1. Is Vimeo free to use?
Answer: No, Vimeo doesn't allow creators to upload their videos on this platform for free of cost. Vimeo charges some money from their creators by membership program.
2. Is Vimeo a Chinese company?
Answer: No, Vimeo is not a China-based company. It is an America based company whose headquarter situated in New York City.
3. Can you monetize videos on Vimeo?
Answer: Yes, you can monetize your video on Vimeo using Vimeo OTT and Vimeo On Demand.
Also read: Top Startup Pitch Competitions You Must Join
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