A Vimeo subsidiary is offering pre-roll ads to publishers who wish to use them. VHX, which lets users build their own subscription-based platforms in the over-the-top space, is giving partners to integrate pre-roll ads into those services if they wish.
VHX, which Vimeo acquired last year, offers a number of different services, but one of its most useful features lets partners build their own subscription video on-demand platforms. Previously, only ad-free subscriptions were available through VHX-built hubs, but now, intermediate plans — colloquially referred to as “freemium” plans — will let publishers offer reduced price points to consumers who are willing to see ads imported from Google DoubleClick on the content they watch. Outside of the VHX world, this model is most notably employed by Hulu, which includes ads in its most basic subscription but lets buyers bump up to an ad-free experience for an extra $4 per month.
This change is notable for Vimeo, which has famously eschewed pre-roll ads on its videos in the interest of creating a seamless viewing experience and giving creators more control over their work. In announcing the new feature, however, VHX co-founder Jamie Wilkinson stressed that this expansion will not affect the main Vimeo site. “Many of our OTT partners view advertising and freemium plans as an interim step for driving premium subscription sign-ups” he said. “Vimeo.com remains ad-free but we are excited to now offer advertising monetization for partner owned and operated sites and apps.”
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The launch of freemium VHX subscriptions came among a flurry of updates at Vimeo. In another significant move, the video site has hired Josh Normand, formerly of Brightcove, as its SVP of Sales.
