Vimeo introduces monthly subscription service
(Reuters) - Online video platform Vimeo introduced a subscription service on Tuesday that allows creators to charge on a monthly basis.
Currently, video makers can sell their material a la carte or through rentals on Vimeo.
"Both the supply and demand side for premium paid video is totally proven," said Kerry Trainor, chief executive of Vimeo.
He compared Vimeo to pay-TV channel HBO, which is supported by subscriptions. Vimeo competes with Google's YouTube, which derives its revenue from advertising in a similar way to broadcast television.
Vimeo has over 600,000 paying subscribers for its tools business that allows film makers and others access to more storage and customization features.
The new subscription service will allow content owners to charge at least 99 cents with no ceiling. Vimeo will take a 10 percent cut.
IAC/Interactive Corp, which owns Vimeo, does not provide a breakdown of the video platform's revenue.
In 2013, Reuters reported that Vimeo made $40 million in revenue.
(Reporting by Jennifer Saba in New York)
