CEO of Vimeo, which is growing rapidly against YouTube, talks about its strategy
Vimeo, which claims to be 'for creators,' is growing rapidly. Vimeo CEO Anjali Sud responded to an interview with IT news site The Verge to find out what is responsible for this rapid growth.
While YouTube holds the hegemony of the world as a video sharing service,
How Anjali Sud reinvented Vimeo --The Verge
The reform carried out by Mr. Sud, who became CEO in 2017, is 'strengthening services for creators.' Before this reform, Vimeo could only secure the position of 'deteriorated YouTube' in the video sharing service market, but after the reform, it showed strong appeal to creators, and by the end of 2020, 1.5 million paying members Break through. In the fourth quarter of 2020, it achieved rapid growth of securing revenue of 83.8 million dollars (about 9 billion yen) only for paying members, and launched a strategy of 'reinvesting to save taxes and making a deficit settlement'. Nevertheless, there is also a nice miscalculation that we inadvertently make a profit.
'I thought I couldn't compete with Netflix, which announced that it would spend $ 17 billion a year on original content,' said Sud, who joined the company as marketing director in 2014. When thinking about the company's strengths, he commented that he reaffirmed that it was 'always targeting professional video creators.' At that time, CEO Sud felt that not only large companies but also small and medium-sized companies were starting to look not only at websites but also at 'communication using movies.'
Also, CEO Sud said he focused on YouTube rather than Netflix or a company that is spending a fortune on expanding content, such as Disney, which competes with Disney +. As a result of Sud's thinking about 'differentiation from YouTube', YouTube is investing in 'advertisements' displayed in the content posted by users, so 'services' that most affect the amount of advertisements displayed He felt that he was focusing on 'use time'.
Vimeo, on the other hand, is characterized by the absence of any ads, and is a service that makes money through subscriptions rather than advertising revenue. In other words, if YouTube is a service that 'makes money by providing a place for entertainment to the viewer side', Vimeo contrasts with 'a video content creation tool on the creator side and a distribution place of the created video'. It was a service that 'makes money by providing'.
CEO Sud said that Vimeo provides tools for inserting movies not only on Facebook and YouTube, but also on corporate portal sites and corporate official websites, so it is a powerful means of communication such as text and images. He says he is positioning Vimeo as a service that enables the use of video. It's a completely different business model from YouTube, so 'if you've been steering in the current direction for years, you might have been a dichotomy between YouTube and the industry,' said Sud. Is talking.
by Collision Conf
The Verge's 'When I ask YouTube creators, I hear the opinion that'YouTube is shit'. These creators say,'Which service should I use when I'm angry with YouTube?'' But when asked, 'Why does Vimeo seem to keep a distance from these'YouTube alternatives'?' Sud said, 'I've heard a lot of that, but we're actually. Is far from the YouTube alternative. ' Vimeo provides the best service for creators and businesses, and has indicated that it does not intend to respond to the voice that many creators want, 'I want to earn advertising revenue in places other than YouTube.' ..
On the other hand, as a result of matching the wishes of YouTube creators with the attitude of the company, Vimeo provides a toolset & service ' Vimeo OTT ' with the concept that 'creators launch their own' services like Netflix ''. doing. Vimeo OTT is a service that can turn video content into a full-fledged subscription, and YouTuber's voice that was successful to some extent 'If you can get a flat rate charge for some of your followers as well as advertising revenue, you can make more money' It is said that the sales are 'best'.
Monetize with Video and OTT | Video Subscription Platform (VHX)
CEO Sud explains the benefits of Vimeo OTT: 'If you want to build a service like Netflix on your own, the cost will be astronomically high.' For services like Netflix, you have to hire engineers to build websites and apps, hire designers to create templates, and even have customer support on hand to see if your business is doing well. Even an analyst is required, and it costs hundreds of thousands of dollars (tens of millions of yen) when converted. On the other hand, Vimeo will provide the developed service to 1.5 million paying members in parallel, so it is possible to destroy the price as if shifting from handmade to mass production at the factory, Sud said.
In the interview, CEO Sud repeatedly emphasized the attitude of providing services to 'content providers' such as video creators and companies that distribute the created content. CEO Sud sees video as a 'method of communication' rather than a method of entertainment or monetization, and includes 'in-house communication using video' not only for large companies ranked in the Fortune 500 but also for small and medium-sized companies. He says that the biggest business opportunity is the voice of 'I want to hire people without taking outside the company.'
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