Jason Kilar Takes the Wraps Off Vessel

/ Dec 17, 2014

Vessel says it's doing well in its first month

Vessel, the stealthy short-form video startup from former Hulu CEO Jason Kilar, is ready to show what it’s got.

The ad-supported and subscription video service — essentially Hulu for short-form video — is launching in “creator preview” mode, allowing video producers to see, play around with, and upload their videos ahead of the consumer launch in early 2015. The subscription version will be priced at $2.99 per month.

Vessel_ProductShot_WallComboSo what’s the pitch? As previously reported, Vessel wants video creators — from new and traditional media, according to Kilar — to distribute their content exclusively on Vessel for a certain period of time. In most cases, this would be 72 hours, before creators are free to distribute on other video sites, including YouTube.

In return, Vessel is promising multiple forms of revenue, and better rates than what creators are typically used to.

Creators will get 60% of all revenue generated from Vessel subscriptions. The company will dole this money out based on how much time viewers spend on a creator’s channel or content. For instance, if one creator’s videos accounted for 5% of all minutes spent on Vessel’s subscription service, then that creator would get 5% of the subscription dollars set aside for creators.

“During the early access period on Vessel, we estimate that creators will earn approximately $50 for every Vessel_ProductShot_VideoCombothousand views (up to 20x the levels earned from free, ad-supported distribution),” said Kilar in a blog post announcing the soft launch.

There’s also the ad-supported, free version of Vessel. Here, the company is promising 70% of all ad revenue generated against their videos.

A third revenue stream comes via a referral program set up by Vessel, which will pay creators for every fan they’re able to convince to subscribe.

While most of the news confirms what’s previously been rumored about Vessel, Kilar is savvy in how he’s pitching the upcoming service to creators. More from the blog post:

“Despite the many positive things that the internet has made possible in media, to date there hasn’t been a clear path for most of these talented creators to build sustainable, enduring businesses on the basis of their video storytelling alone. We believe that media can, and should, do much better.

Today, most creators and content owners put their content on the free, ad-supported web in the hope that they can create a sustainable business. However, they often only earn low, single-digit dollars for every thousand views their videos generate. At this level of monetization (or even 5x this level of monetization), it is extremely challenging – if not impossible – for most creators and content owners to realize their creative and professional ambitions if this is the sole manner in which they release their content.

This is not just a creator problem – it’s a consumer problem too. Challenging economics constrain which ideas creators can afford to pursue. This means fans may never see a creator’s next big idea, or experience it in the way it was originally envisioned. Making things worse, some creators feel the need to “graduate” to another medium (e.g., traditional television) to make more money, leaving their digital audiences behind. In this process, the creator often cedes control and stops making the content fans want most.”

In other words, he knows it’s difficult for creators to make money on the ad-supported video web. So come join him and his new startup as it tries to help you make more, so you can make more of the stuff you love.

Will this work? It’s tough to say. There’s no guarantee that the opportunity to watch new videos from their favorite stars three days before everyone else, and on a service that admittedly looks really nice, will be enough to convince people to pay $3 per month.

And while $50 for every 1,000 views looks nice, Vessel will also need to be able to attract the kind of audience that would make such an offer worthwhile.

That said, Kilar has as good track record as any — as well as a $75 million war chest — to give it a shot.

Right now, the company has a decent number video creators and networks on board to test the service. These include YouTube MCNs like Machinima, Tastemade, and DanceOn, as well as stars like Rhett & Link, Ingrid Nilsen, and Shane Dawson.

Non-YouTube video networks and traditional media companies are also willing to give Vessel a try, including CollegeHumor, Funny or Die, Vevo, Major League Soccer, BuzzFeed, Time Inc.’s Sports Illustrated, and A+E Networks. For these companies, though, there is no “early access” option, as Vessel will merely function as another place to distribute their videos.

Creators interested in distributing on Vessel can apply here.

Tags: , , , , ,


  • Coxy

    This is great to see. YouTube needs to have some more competition.

  • sofiafenichell

    It’s fantastic. I don’t think 72 hours is a long enough period of exclusivity. It should be a month. The numbers need to work that way.

carmilla-u-by-kotex

Lesbian Vampires & Kotex: How ‘Carmilla’ Became...

 
aap-rocky

MTV Labs Taps Rapper A$AP Rocky as Creative Director

 
CableCross

FCC Cancels Vote on ‘Unlock the Box’ OTT Proposal

 
lights-out-shoot-blackbox-tv-collab

Collab Signs Horror Channel BlackBoxTV to Network, Partners on...

 
Industry Tickets Selling Fast!
Click above to lock in your registration for VidCon 2015!
 
PewDiePie 3-2-15

PewDiePie Expands Revelmode Gaming Slate with DoubleMoose Deal

 
storyful-marketplace

Storyful Launches Viral Video Marketplace

 
lyor-cohen-youtube-music

Pioneering Hip Hop Exec Lyor Cohen Joins YouTube as Global Head...

 
alpha-legendary-digital

Legendary Digital Reveals Alpha Subscription Service Launch...

 
time-inc-jash

Time Inc. Teams with Digital Comedy Producers Jash for Branded Content

 
Amazon Logo

Amazon Greenlights Three Comedy Pilots as Series

 
cartoon-network-app

How the Cartoon Network Combined the Best of VOD and Linear TV...

 
jukin-media-ethos

Jukin Media Goes Viral for Brands with Ethos Division Launch

 
Streamy Awards

Streamy Awards Trade In VH1 for YouTube, Again

 
zefr-alignment-report

Matching Ads to Videos Not So Simple, According to Zefr’s...

 
shomi

Plug Pulled on Canadian SVOD Service Shomi

 
Twitter

What’s Trending on the Twitter Sale

 
Machinima Logo

Machinima Teams with SiriusXM for Daily Esports Radio Show

 
Hearst

AwesomenessTV, Vice, Complex to Power New HearstLive...

 
dirty-30-hannah-hart-mamrie-hart-grace-helbig

VIDEO: ‘Dirty 30’ Confessions with Stars Hart,...

 
facebook-thumbs-down

Facebook Says It’s Sorry It Vastly Overestimated Video...

 
craig-piligian-pilgrim-media-group

Pilgrim Media Group CEO Craig Piligian (‘The...

 
youtube-heroes-for-change

Heroes or Rats?: YouTube Unveils New Program for Creators Who...

 
Vessel says it's doing well in its first month

Why Verizon is Pursuing Vessel, the...

 
jared-feldman-and-sam-hui-ph-d-at-the-2014-canvs-launch

How Canvs Media is Harvesting Emotional Insights on YouTube,...

 
marlon-wayans

Marlon Wayans Getting ‘Naked’ for Netflix with Regina Hall

 
huffpost-ryot-aol

HuffPost RYOT Launching Virtual Reality Comedy Series and News...

 
youtube-vote-irl

YouTube Launches #voteIRL Campaign Targeting Digital-First Generation

 
tyler-oakley-camp17

How Top YouTubers (incl. Tyler Oakley & Meghan Rienks)...

 
charlie-sheen-anger-management

Charlie Sheen to Star in Crackle Feature ‘Mad Families’

 
filmbuff_videoink_300x250

Gunpowder & Sky Buys Distributor FilmBuff As Vision for...

 
toy-freaks-youtube

Toy Freaks Top Viewed YouTube Channel in August According to...

 
jeffrey-tambor-transparent-amazon

Emmy Wrap-Up 2016: Jeffrey Tambor (‘Transparent’)...

 
Twitter

Twitter Scores 2.1 Million Viewers for Thursday Night Footall Kickoff

 
youtube-sad-face-error

Vloggers Not Unique Snowflakes: 90 Million Flag YouTube Videos...

 
Mode Media

‘Billion Dollar Startup’ Mode Media Shuts Down

 
raised-firsts-branded-tv

Who Is Winning The Marketing Revolution And Why?

 
shes-gotta-have-it

Netflix Orders ‘She’s Gotta Have It’ Series...

 
swedish-dicks-peter-stormare-keanue-reeves-viaplay

What Is ‘Swedish Dicks’ and Who Is Selling It?

 
seamlessly-she-monica-potter-aol-partner-studio-gmc-acadia

How GMC is Using the AOL Series ‘Seamlessly She’...

 
Netflix_new

Liberty Global to Put Netflix on Set-Top Boxes in 30 Countries