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Vimeo Ends Plans for Indie Subscription Streaming Video Service

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In a sign that the subscription video-on-demand (SVOD) market might be nearing a saturation point, video sharing site Vimeo has cancelled plans to create its own service. This follows an announcement from November 2016 when IAC CEO and interim Vimeo chief executive Joey Levin announced the service in a letter to shareholders. At the time, Levin called the moment a "once-in-a-generation opportunity to, following in Netflix’s footsteps, deliver compelling subscription viewing experiences for consumers in the market for pay TV." While IAC and Vimeo planned to create an SVOD service stocked heavily with original content for far less than Netflix pays, those plans are now off.

“Vimeo has confirmed that it has decided not to proceed in offering a subscription-based original program service scheduled to begin in ’18," was Vimeo's response when questioned by StreamingMedia.com. The quote was to be attributed to "a Vimeo spokesperson."

Levin had more to add, releasing a statement that said, "This was a difficult decision—the idea of pursuing an SVOD service for Vimeo has always been intriguing, and I would have loved to see the incredibly talented Alana Mayo’s programming vision realized here at Vimeo.”

That statement refers to Alana Mayo, a former Paramount Pictures vice president of production who jointed IAC in March 2017 along with two other executives, to create the SVOD offering. Levin's statement confirmed that Mayo is now leaving IAC.

“Vimeo’s recent decision to not move forward with a subscription streaming service reflects not only their understanding of a rapidly saturated market for SVOD, but the realization of how they can successfully expand and grow in their own niche of streaming," notes Mike Milligan, senior director of product and solution marketing for Limelight Networks. "There are many SVOD services available, however, only a few of them are profitable."

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