Vessel launched in March 2015 in a blaze of publicity, with the company staking out a claim to rival YouTube and even Netflix. At launch, the former Hulu CEO promised to re-write the current business models in place in the online video market which Vessel believed made it extremely challenging, if not impossible for most creators and content owners to realise their creative and professional ambitions. Vessel’s offer enabled access to short-form videos through what is called a low-priced subscription service, made sustainable through a limited amount of advertising.
Since then the company has struggled to make headway against formidable rivals who had all made huge investments in original content. In addition, it came to life at a time when comms giants such as ATT and Verizon have been busily buying video assets to round-out their service lines.
Commenting on why the company sold up, Kilar and fellow co-founder and CTO Richard Tom said: “It has been incredibly fun to brainstorm ways technology can power a great video experience globally, to dream up ways to improve video advertising and to make those ambitions a reality. At the same time, Verizon … has made clear their convictions about the future of online video. They share our belief that Internet protocol will inevitably become the dominant way consumers access great video experiences. The Verizon team has backed this conviction with material investments and a focus on what makes them unique in a competitive marketplace. It’s easy for our team to imagine the amazing ways customers can be served when Verizon’s high speed wireless platform is combined with their strategic commitment to video and our team.”
Though no concrete details have been released as to what form Vessel will take, Kilar added that the service in its current form will close on 31 October. All subscribers will be provided complimentary access for the month of October and subscribers of an annual plan will be refunded back to the beginning of October.
Video has become a more important element in Verizon’s portfolio; only days ago it announced it had added 36,000 net pay-TV subscribers for its FiOS IPTV video service in the third quarter of 2016, taking the total to 4.67 million.