Are you ready to pay to watch web videos? Jason Kilar thinks there are many who are. After a couple of months of tinkering, the former Hulu CEO is ready to bring his next startup to the public, which will give them a chance to pay $2.99 a month to watch videos they might be used to seeing online for free.
For the money, Vessel gives subscribers early access to the videos that will eventually be posted to YouTube and elsewhere. Following an invitation-only public beta, Vessel is now available to everyone — and if you sign up in the next 72 hours, you can get it free for a year.
Consumers are watching more video on mobile devices, and YouTube — backed by the might of Google — has become the undisputed leader in delivering it. While YouTube can’t be beat for reach, some creators complain that YouTube doesn’t pay them at levels commensurate with the size of their audiences. Vessel aims to address that issue, believing it will attract the best content that, in turn, will pull in viewers.
The new service will share 70 percent of advertising revenue and 60 percent of subscription revenue with content providers. YouTube doesn’t disclose the terms of its deals with creators, which can vary widely, but its standard revenue share is widely known to be 55 percent of advertising revenue. Its top creators enjoy more lucrative terms under a program called Google Preferred.
“Consumers of Web video care so deeply about this video that they’re willing to pay to get it early,” said Jason Kilar, its cofounder along with Richard Tom.
Until now, Vessel has been successful in recruiting a few big names of web video, who will now find a new home. These include Good Mythical Morning, a daily morning talk show with more than 6 million YouTube subscribers; and Shane Dawson, a comic vlogger whose biggest YouTube channel also has more than 6 million subscribers. Vessel will also host content from traditional TV networks, such as A+E, and mainstream celebrities, such as a series starring Alec Baldwin.
