Six months ago, after a bit of internal debate, Vimeo decided that it was no longer going to attempt to build a Netflix type platform filled with licensed and original content. Instead, it would take the money intended for the service and invest it in tools for creators in the platform.
“We really wanted to take care of our creators, build more tools for them, empower them to build their own channels as opposed to going after our own channels,” explained Kathleen Barrett, Vimeo’s GM of OTT, in a recent interview on Videoink’s “Over The Top,” a digital series sponsored by Axonista.
According to Barrett, Vimeo is attempting to create an “end-to-end” creator platform. To do this the company is investing in editing software, review tools, and helping their creators feature their work on multiple platforms.
“With the OTT tech you can have your own website with your brand. You can be across apps, devices, and TVs,” Barrett explained. “We want to empower folks to move beyond Vimeo as well, but focus on building their business using our creator tools, kind of thinking of ourselves as a mission control.”
For those looking to launch their own subscription channel, Barrett suggests keeping the price around $6.99-12.99 because that is what sells best and has the best retention rate, according to Vimeo data. But the GM explains that the price will depend heavily on the content. For example, the average cost a creator charges for a channel based on entertainment and media is around $6.99, but “fitness creators, or inspirational speakers, or educational content… seems to be successful at a much higher price point,” with some creators selling subscriptions for $60/mo
However, Barrett says that not every creator needs an OTT channel. The industry veteran explained that the need for a channel depends heavily on content output and audience engagement. She explained that even if a creator has only 10 subscribers, but those ten people are willing to pay $100/mo for the content, than a subscription channel is probably a good fit, just as long as they can deliver a steady stream of content.
“If you cant continue to give your audience content, I think it might start to fall apart.” But if it does fall apart, “Mission Control” will be there to help creators pick up the pieces.