Guide

Five reasons to launch a subscription service

How to get the tools you need to get an OTT channel off the ground.

Independent creators are the future of online video

Today, well-known companies exist right alongside passionate and talented educators,yoga instructors, bakers, actors, and more — all of whom bring fresh videos to their devoted fan bases. And in some industries, small businesses and individuals surpass bigger companies. In the beauty industry, for example, major brands only earn three percent of the billions of views on beauty videos. Those who grow a healthy following can now earn money simply by doing what they love. Translation: it’s an incredible time for anyone who wants to build their passion into a successful brand.

And yet, many creators don’t have the tools they need to drive awareness, build their brand, and earn the money they deserve (all while providing a quality viewing experience to their fans). From the outset, it may seem impossible to turn a small brand into a full-fledged video business without hiring teams of developers and customer support staff. But that kind of growth is more easily attainable than many creators realize — all it takes is the right set of tools.

Take the online TV network Black&Sexy TV. They turned to Vimeo’s OTT technology to build their subscription service, and earned $35,000 in one month — the same amount they used to make in one year with YouTube ad revenue. But exactly how did they do it?

YouTube and traditional ad-based models

YouTube has been kind to creators. It’s provided a home for their videos and a tool for them to make money from advertising. The top thousand YouTube channels pull in an average of $23,000 in advertising revenue each month.

Unfortunately, there is also a lot of noise and competition, and that means many talented creators never crack that top tier. There isn’t much room for creators to showcase their brand how they want. Channels, for example, offer limited design customization options. Additionally, while creators can embed videos on a personal website, they’re on their own to actually build and maintain that site. This can often be the biggest challenge for creators who don’t have the time or expertise to master web development and design.

Netflix and the pipe dream

Another leader in streaming video is Netflix. In many ways, it’s the opposite end of the spectrum from YouTube; Netflix isn’t a place for creators to upload videos. There’s only one brand that Netflix represents, and that’s their own — and with that, they do an incredible job. Netflix is instantly recognizable, their service is accessible on most every device, and the subscription and payment experiences are seamless for viewers. So how does this impact creators? Netflix spends tons of money to ensure their service remains at the top of the streaming video heap. While they can easily employ software developers, data scientists, customer service specialists, graphic designers, user experience researchers, and plenty of other experts to keep their brand growing, most independent creators can’t afford that kind of arsenal.

It’s not always easy for individual creators to find success unless they’re already a major player in the field.

5 reasons to launch with Vimeo

1. Seamless apps for smartphones and connected devices.

More and more viewers prefer to enjoy their content on a mobile or connected device, and offering an app has been shown to increase signups by 20% (and upward). Normally, building an app takes a dedicated team of developers and, once created, getting it into the iTunes Store is a lengthy and expensive process. That’s why Vimeo works alongside creators to build branded apps that are accessible through all the major streaming video platforms (including iTunes), and on connected devices like Roku.

2. Convenient and effective payment processing.

To maximize audience growth, streaming services need to be able to accept payment from viewers simply, securely, and globally. Vimeo offers in-app subscriptions and payments and credit card processing fees for 2.5% plus a fixed 30 cents per transaction—a much lower cost than competitive services available. Plus, Vimeo’s successful payment rate is 93% — which significantly lowers the chances of involuntarily losing a subscriber due to payment failure.

3. Quality video management and delivery.

The success of a subscription service ultimately depends on quality, both of the video content and the overall viewing experience. To engage audiences, your subscription service needs to provide pristine quality even when users jump between internet connections.

4. Gorgeous, effective design and development.

Any friction viewers feel when using a subscription service can cause them to leave. That means ongoing development and design are key to keep up with both a steady influx of videos and the ever-changing media landscape. Vimeo’s development team is dedicated to constantly rolling out new features, squashing bugs, and ensuring the highest quality product possible. And that attention to detail leads to a much higher rate of viewer satisfaction and customer retention.

5. Powerful analytics and optimized videos.

When creators understand what’s resonating with their viewers, they can make better decisions that create real impact for business and audience growth. This means you need comprehensive data — metrics around audience growth, the revenue generated by a subscriber over the lifetime of their subscription, and the average monthly or yearly revenue per user. Vimeo provides all of these insights and more.

A streaming service built for you

Creators have the opportunity to transform their videos into a serious, profitable business. With the right tools to iterate and adapt, a subscription service will provide an incredible viewing experience for their audiences.

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