Vimeo acquires video subscription platform VHX

Steven Loeb · May 2, 2016 · Short URL:

VHX is a video distribution platform that lets creators launch their own video subscription services

The streaming video business is dominated by big companies, like Netflix, Amazon and Hulu, but what about the little guy who wants to set up his own network? Sure, he can create a YouTube channel, but otherwise his options seem to be pretty limited. 

VHX is a company that has been trying to solve that problem, offering a platform that allows video creators sell their content from their own websites, directly to their fans. Now it will have the opportunity to offer its services to a much wider audience, as the company has been acquired by Vimeo, it was announced in a blog post from VHX co-founder Casey Pugh and Jamie Wilkinson on Monday.

No financial terms of the deal were disclosed, though VHX's entire 22-person team will be coming to work at Vimeo. The company is currently headquartered in Brooklyn and will relocate to Vimeo’s headquarters, also located in New York, in the coming months.

VHX says it provides "comprehensive technology for businesses to create custom video experiences across all major platforms and connected devices."

The company helps publishers sell anything from films to TV shows, comedy specials, live concert footage and lectures, with tools that include customizable website design templates, customizable embed tools that integrate VHX purchase and trailer widgets, analytics of transactions and traffic, as well as promotional tools. Its publishers have grossed over $9.6 million and served over 1.5 million customers to date.

Going forward, not much will be changing for VHX or its customers, according to the company's founders. 

"Vimeo believes as strongly as we do about helping people build successful online video businesses, and there will be no disruptions to the VHX platform," they wrote.

"In the long-term, we get to improve VHX a lot faster: better streaming infrastructure, better apps, more marketing and business development firepower, and access to a huge, global audience. Over time we expect these improvements will translate into more competitive products, and new marketing and syndication opportunities for our sellers."

A spokesperson for Vimeo told me that VHX will continue to operate under the name VHX initially, but eventually the platform will live under the Vimeo brand.  

For Vimeo, acquiring VHX helps enhance its own subcription product, which it launched in June of last year, allowing creators to choose to charge fans a monthly subscription fee for unlimited viewing.

"With the addition of VHX, Vimeo now offers a complete streaming ecosystem for individual creators, niche programmers and major media partners to offer subscription video on demand (SVOD) channels. Only Vimeo offers partners the ability to build catalogs and audience by sourcing programming from Vimeo’s vibrant creator community, and accessing Vimeo’s global ecosystem of over 280 million monthly users," the Vimeo spokesperson said.

"The acquisition is an extension and acceleration of our existing strategy. Vimeo continues to focus on being the leading open, streaming marketplace for consumers to access high quality programming direct from creators worldwide."

Founded in 2010, VHX had raised $10.25 million in venture funding, from investors that included Alexis Ohanian, Chris Sacca, Comcast Ventures, Lerer Hippeau Ventures, Lowercase Capital and Union Square Ventures, among others.

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