In an interview with Axios, Vimeo CEO Anjali Sud noted, “Today 100% of our business model is software as a service, like a Dropbox or a Slack. We just saw so much organic growth from the software tools side among the creators that it became a no-brainer that this is what we should focus on.”
The pivot has allowed Vimeo to pursue the SaaS market and focus primarily on stock videos and images. The market is currently saturated by large tech companies that have invested billions in original content.
Vimeo will soon begin selling Vimeo Stock, a software tool that aids creators in accessing stock video, similar to Getty Images. Vimeo Stock will include a large library of videos that contain exclusive content from a creator community to technological tools that allow users to optimize content across various social media platforms. This tool may be purchased through a subscription package or by purchasing individual parts, for users who don’t plan on utilizing each service.
Non-exclusive content will begin at $79 for HD videos and $199 for 4K clips. Exclusive content will begin at $299 for HD videos and $499 for 4K clips.
The company will reportedly offer a higher revenue share than its competitors, with contributors keeping 60-70% of revenue generated from their licensed videos, in comparison to an average industry cut of ~35%.
Vimeo is currently targeting professional creators, brands, agencies, and mid-sized businesses as it sees social media creation being a vital staple of the company’s initial marketing efforts for the foreseeable future.
For the past year, Vimeo has slowly moved away from being a video viewing platform by refusing to invest further in original content. Sud went on to specify, “Most large video-viewing destinations, like YouTube and Facebook, are ad-supported, and are focused on keeping content and eyeballs on their platform. But if you’re a creator, you need an agnostic and independent home to create and distribute your work and there really are no other creator platforms that do that at scale.”
As of now, Vimeo will continue plans to stake its future revenue growth on this new subscription tools model. Through this effort, the company hopes to develop a reputation as a technology company instead of simply a media streaming platform.