Vessel vs YouTube: What It Means for Advertisers & YouTubers

Vessel vs YouTube Video Platform

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Which Is The Better Video Platform? Vessel vs YouTube

A premium version of YouTube is soon to give the Google-owned video service a run for its money. Founded by Jason Kilar, the former CEO of Hulu, Vessel is the first subscription-based streaming-video service. For a monthly premium of $2.99, Vessel subscribers can watch videos from some of their favorite YouTube creators before it arrives on competing video platforms (see our post on How Vessel Is Poaching YouTube's Stars). This new experience elevates short-form videos into the same category as TV or movies where users willingly pay a much higher premium to view TV shows live or movies in at a theater. Alternatively, Vessel offers to have free ad-supported videos for those who choose to opt out of the subscription.

Vessel Vido Platform iPad

Vessel allows content creators another platform to syndicate their videos but more importantly, Vessel offers a much higher percentage split to its creators, ultimately serving to lure content creators away from YouTube (see our post on ways to collaborate with YouTube content creators). Creators have the ability to choose which videos to put behind Vessel’s paywall for three days or longer prior to debuting on YouTube or limit to Vessel's free service. Their paywall videos generate a cut of Vessel’s subscription and advertising revenue. Vessel's free video service option generates revenue from ads. Furthermore, creators receive a 70% cut of revenue from ads versus 55% from YouTube while videos behind paywall will receive a 60% cut of subscription revenue based on the number of minutes paying subscribes spend watching their videos. They will also receive $7 for every person they refer and convert into a Vessel subscriber.

Vessel vs YouTube CPMs: How Much Do YouTubers Make?

At a much higher CPM, $50-per-thousand-views projection, Vessel is more than 20 times as much as the estimated $2.20 rate creators typically make from free ad-supported services like YouTube (see our post on monetizing with Youtube). Since the overall user experience is not a drastic departure from its existing competitors, Vessel seems to be more of a complement to YouTube rather than a direct competitor.  For creators looking to grow their fanbase as fast as possible, It may prove difficult to do so through paywalled videos if only paying subscribers have access to their content. Most users will still typically default to the platform that has the most widely available assortment of content free of charge and most importantly, provides the most convenient way of sharing the content onto other social platforms.

Also See Our Posts On:

What You Need To Know About YouTube Red, YouTube's First Subscription

What Happened To Vessel's Video Platform?

YouTube's New Shoppable Ads Makes Every Video Shoppable

January 8, 2015 By Evan

  • Brannock Cooper

    Vessel has intrigued me since I first heard of the concept. This article fairly concentrates on the financial aspects, making comparisons between the compensation methods offered by Vessel and YouTube. Injecting editorial commentary stating that Vessel is more of a complement to Google’s YouTube is typical of the consistent underlying skepticism common among Web journalists. When I was working with Apple, the iPhone was still pretty much an unconfirmed rumor, but already a confirmed failure based on the opinions of expert analysts writing for industry Web sites. It was argued that the iPhone was just another phone to complement the assortment of cellphones already available on the market. There were cellphones that played music, and they sold for less than $200! Besides, only AT&T was willing to support the iPhone.

    Skepticism and cynicism have served editorialists well in the Internet business arena. Most Internet ventures, like any business ventures, are plagued with problems that prevent them from their envisioned success. Those Internet ventures, or Internet based products and services that become incredibly successful, are thought of as unlikely surprises, supported by the ever prominent skeptics only in hindsight. Like the already successful iPhone, the iPad was also judged by the same pundits as an unnecessary and expensive gadget that offered less functionality than the iPhone. That may have been true, but it sold more units than predicted and over 200-million units since it debuted in 2010.

    My experience in entertainment and video production indicates that Vessel has an opportunity to become a successful venture which has the opportunity to make much more of a cultural impact on the development and widespread acceptance of quality short-form video. As long as CEO, Jason Kilar, maintains confidence in the number of independent video creators and producers who are looking for a distribution opportunity the likes of Vessel, he will have a multitude of supporters. There was mention of the concern of overlap with YouTube. YouTube tries and is successful in being all things for all people equipped with any sort of device capable of capturing video. It is part a video-share site for the “if it can be caught on video, it belongs on YouTube,” crowd of Facebook and other social-media users, and part a venue for creative artists and short video producers. The latter group of artists and creators find their content diluted by the former.

    Vessel, by setting its standards higher, and establishing marketing relationships with the plethora of video and filmmaking Web sites, could easily establish itself as the professional distribution outlet for short-form video productions. The creatively talented would be motivated to display their works on a site which demonstrates it takes their work seriously. Vessel could incorporate interviews and tutorials from industry professionals, successful directors, writers and creators of short-form video entertainment. Ongoing awards based on budget, creativity, and viewership could create a pool of talent from which professional longer-form production companies could draw upon. Kilar & Co. need only concentrate on excellence while maintaining the diverse nature of the medium. The only skepticism I can offer is that the commentary introduced in the article would possibly come to fruition if Kilar creates a successful company only to sell out to the first buyer, i.e., Google, Amazon, etc.

    As long as CEO, Jason Kilar, concentrates on creating the best distribution channel for these independent video creators and producers, there is a golden opportunity he may foster a shift change as important as the change created by independent producers and directors who bucked the age-old movie studio system. It may sound like hyperbole, just as when Steve Jobs set out to sell the Beatles catalog on iTunes. To work with the Vessel team and see it succeed like I know it can, would be a worthy pursuit for a forward-looking professional.

    • http://www.mediakix.com Evan

      Great insight here – especially the bit about Vessel exclusive interviews! Thanks for sharing your thoughts.

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