Vimeo acquires white-label video subscription platform VHX to help creators build their own Netflix

Vimeo has acquired fellow New York company VHX, a platform that lets creators set up their own video distribution networks online. Terms of the deal were not disclosed.

Founded in 2010, VHX offers a number of services aimed at helping people to launch their own subscription-based service and to sell or rent videos individually. The model is similar to companies such as Shopify or Squarespace, insofar as it’s a white-label service that provides the backend smarts for developers to set up their own feature-rich website with payment systems and checkouts integrated — except with VHX, the focus is purely on selling video.

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With around $10 million in funding, VHX says that there are around 30,000 subscribers to the more than 100 video channels powered by its platform, which include everything from yoga skits to hunting. Not all video services are white-label, though — VHX also offers a hosting service.

The acquisition makes sense for Vimeo on many fronts. The company has long sought to differentiate itself from the likes of YouTube by targeting creatives, having launched its own paid on-demand service back in 2013 that let anyone sell TV shows and movies directly to viewers. And just last month, Vimeo wooed developers with a new white-listed API program that lets third parties integrate more deeply with Vimeo’s video-streaming platform.

As a result of this acquisition, Vimeo says it’ll be bringing on the entire 22-strong VHX team, including founders, who will now work to sell Vimeo’s wares to film studios, broadcasters, agencies, and more. So this deal unlocks an interesting new vertical for Vimeo — offering to help developers, creatives, and corporations build their own subscription video-on-demand (SVOD) services. “Online video is expanding from a few mainstream subscription services into a flourishing world of interest-based streaming channels, much like the evolution from broadcast to cable television,” explained Kerry Trainor, Vimeo CEO.

So VHX is a potentially powerful new arrow in Vimeo’s quiver, as it now offers audience reach with almost 300 million users, video analytics, a hosted VoD solution (Vimeo on Demand), and a white-label service that lets companies use their own apps, websites, and brand.

As for VHX, well, it gains one crucial thing as a result of the acquisition: scale. “Adding our platform to Vimeo’s massive community of creators and consumers means we’ll be able to move faster, and help creators large and small succeed in the over-the-top streaming market,” said VHX cofounder and CEO Jamie Wilkinson.