Vimeo is a professional Video hosting and sharing platform. It terms of popularity it ranks only next to Google’s YouTube.
Though there are a lot of similarities between the two platforms, the revenue model of Vimeo is quite distinct from that of YouTube.
In this post we discuss how Vimeo makes money and how its revenue model is different from the revenue model of YouTube.
The Revenue Model of Vimeo:
When I talk about the similarities of the two platforms, both Vimeo and Youtube do not charge users any fee for viewing videos [hosted] on their platform.
Vimeo makes money by charging users a fee for hosting videos on their platform.
Contrast this to the revenue model of YouTube which is advertisement supported.
YouTube does not charge users for uploading videos; it makes money by embedding advertisements in video content that play before or in-between a video session.
Youtube also has a program wherein it shares a part of this advertising revenue with eligible video content creators.
Why pay when you can upload for free?
You must now be wondering what makes people pay money to upload videos on YouTube when they can do the same for free on YouTube?
The answer again lies in the way YouTube makes money.
While some may be fine with advertisements embedded into their video content; professional content creators like media houses, corporates or those promoting a particular cause (like NGOs) might actually find this to be a hindrance.
For example, a media house might find that the ads playing frequently in-between [their] videos are actually taking away from audience engagement. A corporate might find a competitors’ ad embedded into their video.
It is primarily “this” disadvantage that YouTube presents that becomes the USP of Vimeo.
Vimeo targets these users by providing them with an ad-free platform to showcase their content to the world – all in exchange for a fee.
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