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TV Connect 2015 Day 2 highlights: Niche interests, big revenue

Tony Gunnarsson, Senior Analyst,  Ovum

Tony Gunnarsson, Senior Analyst,
Ovum

Ovum analysts relate their day-by-day highlights at this year’s TV Connect

Tony Gunnarsson, Senior Analyst, Ovum: Outside the mainstream, VOD is also turning out to be an ideal platform for dedicated fan groups and “passionate audiences” who are prepared to pay for access to their specific niche interests. This is the view of Vimeo, which identified its target audience as such. Sam Toles from Vimeo talked about how independent content producers are selling content on the Vimeo On-Demand platform for the relatively high price of $15, rather than the typical $5 per rental of mainstream Hollywood content in SD on iTunes and other online video stores. Some videos on the platform have generated “six-figure revenues.”

Interestingly, Vimeo’s revenue-sharing deals with producers are on the basis of a 90/10 split which, when compared with mainstream standards, is a very generous proposition! Having already made a move into original programming, with the TV series High Maintenance and other Vimeo originals, including the forthcoming Con Man series (due September 2015), Vimeo is also considering the SVOD opportunity. Sam Toles mentioned that a Vimeo SVOD platform will be launching in June or July 2015.

Vimeo claims that “hundreds of thousands of consumers” pay to access content on the video streaming site. The general strategy is the age-old one – the majority of content is free but if you want to access premium content you have to pay extra. Perhaps here is an example that could apply to developing markets where free video streaming platforms dominate OTT Video, such as in Asia and elsewhere.

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