Vimeo, a video hosting platform, has finally revealed its reasoning for canceling plans to build an SVOD service. Joey Levin, CEO to IAC, Vimeo’s parent company, provided some clarity to the decision in a letter to shareholders, which was picked up by Recode.
“We have some competitive advantages at Vimeo,” he wrote, “but as we got deeper into the execution and saw what [launching a subscription service] would require, and the compromises we would need to make in our mission to empower creators, the strategy started to look more and more like our competitors, and less and less like Vimeo.”
Basically, what Levin is trying to say, and what the rest of the letter points to, is that developing an SVOD service to compete with the likes of Netflix, Hulu, and Amazon would have been too rich for Vimeo’s Blood.
Its just too bad that the company didn’t figure that out in November of 2016 when it first committed to the idea, or in March of 2017 when it made three big hires to help with the SVOD effort.
No matter the specifics of Vimeo’s decision, the video site must decide which direction its next move will be in. Of course, it can focus on its existing business, which is doing fine seeing how it has 828,000 people paying an average of $100 a year to use the free service’s pro-sumer tools.