|
 Vessel, which costs viewers $3 a month, was founded by former Hulu
Chief Executive Jason Kilar and Chief Technology Officer Richard
Tom. They aim to create an early window for a selection of web
video, similar to the way movies are released in theaters before
they arrive on cable TV or the Internet.
"Early access is very valuable," Kilar said in an interview. "There
are a lot of consumers who would love to see something early."
More than 130 creators will provide early access to content on
Vessel. After the exclusive period ends, videos can go to YouTube,
Vimeo, Vevo or other free, ad-supported sites, and are free on
Vessel.
YouTube stars such as Ingrid Nilsen, Rhett & Link and Shane Dawson
are among creators whose videos will make their debut on Vessel.
Other programming comes from online networks such as food-oriented
Tastemade and celebrities such as Alec Baldwin.
Video creators on Vessel keep 70 percent of ad revenue, compared
with 55 percent that is typical on YouTube, plus 60 percent of
Vessel subscription revenue.
With those incentives, the new service will be an easier sell to
creators than offering viewers who are used to watching videos for
free, said Brett Sappington, director of research at Parks
Associates.
"Vessel must rely on content creators’ popularity and self-marketing
to entice their loyal viewers into paying a monthly fee," he said.
The service is free for one year for viewers who sign up within the
first three days.
[to top of second column] |
It is unlikely YouTube will lose significant revenue from a
migration to Vessel, Sappington said. YouTube made its debut a
decade ago and has more than 1 billion users.
A YouTube spokeswoman said the platform's creators are pulling in
higher revenue, boosted last year by a program called Google
Preferred for advertising on the most popular channels.
Year-over-year revenue rose 70 percent for the top 100 channels
after Google Preferred launched, she said.
Vessel, which raised $77 million in venture capital funds, also
includes free videos with ads. KFC, Chevy and McDonald's are among
the initial sponsors. One option is five-second ads, shorter than
the 30-second spots that usually run before online videos.
(Reporting by Lisa Richwine; Editing by Ken Wills)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
