Vimeo generates revenue by charging for subscriptions to upload high-quality videos that producers can sell or rent to viewers. A $60-a-year subscription eliminates banner ads while a $199-a-year subscription, known as Vimeo Pro, allows users to upload high-quality video and get access to tools that package and sell content to viewers. Vimeo also receives a 10% portion of the pay-for-play sales.

"Companies like Netflix, Hulu, and Amazon see the overall cost of content increasing over time, which is a serious problem for those with a subscription-based business model," said Brett L. Sappington, director of research at Parks Associates, a market research firm. "Successful original content gives them greater control over their costs and provides a way to differentiate themselves from other online video providers."

From the article, "Vimeo commits $10M to luring filmmakers" by Bilal Iftikhar.

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