Nov 17 As one of the media properties tucked
away within IAC/Interactive Corp's vast group of online
holdings, executives are putting the spotlight on Vimeo,
breaking out the number of users and revenue for the first time.
IAC revealed that Vimeo has an audience of more than 100
million unique users, 400,000 paying subscribers and about $40
million in revenue over the past 12 months ending October.
"We have a number of assets that could live on their own,"
said IAC Chief Executive Greg Blatt. "Vimeo, we believe, is an
asset that will reach that status."
As a video web site, Vimeo competes with Google's
YouTube and other streaming video services though it is known
for attracting a niche audience of creative professionals.
Founded in 2004 by a group of filmmakers under media mogul
Barry Diller's IAC, Vimeo has been grouped with company's other
media properties such as Ben Silverman's Electus production
Anyone can post content to Vimeo's platform or watch it for
free, but the company charges $60 or $200 a year for more
comprehensive editing tools depending on the package.
"We have begun to turn our attention to how do we build a
business around the viewers," said Kerry Trainor, Vimeo's chief
Part of that strategy is giving Vimeo subscribers a way to
charge for their own content. Vimeo takes a 10 percent cut of
"Vimeo has proven there is an entire world of really high
quality content out there, just as YouTube showed the power of
broadcasting," Trainor said.
Vimeo hired News Corp executive vice president Greg Clayman
in October to grow Vimeo's audience by building partnerships
with content creators.
IAC also houses a collection of search and dating sites such
as Ask.com and Match.com, which represent a majority of the
company's revenue and operating income.
In recent quarters, IAC's search business - its largest -
has been slowing. It is turning to other revenue sources such as
video to keeps its growth streak alive.
Jason Helfstein, a research managing director at Oppenheimer
& Co, estimates that Vimeo's average valuation at the mid-point
is about $500 million.
"It has been one of IAC's most successful startups," he