In a blog post published yesterday, former Hulu CEO Jason Kilar has revealed details of new video business Vessel, which purports to be a new, more profitable outlet for creators seeking to distribute short-form video content online.
Relying on a mixture of “low priced” subscription charges and advertising for revenue, Kilar says that access to Vessel will be offered for only $2.99 a month (“a low price made possible by incorporating a modest amount of advertising”), although there will be a wholly ad-supported version where the videos will become freely available at a later date.
The benefits of this hybrid model, however, will be shared with the creators “Vessel’s business model (subscription + advertising) will deliver unusually attractive economics for creators, allowing them to pursue their dreams and share ever more ambitious work with their fans,” Kilar explains. “During the early access period on Vessel, we estimate that creators will earn approximately $50 for every thousand views (up to 20x the levels earned from free, ad-supported distribution).”
The Vessel service is now open to creators worldwide, and will be launched early next year.