Vimeo on Demand launches to let creators charge for videos

Online video site Vimeo is rolling out tools to let creators charge for their content, the company plans to announce Tuesday at SXSW.
The move into paid video distribution is a “natural next step” for Vimeo, CEO Kerry Trainor told me, following the launch of a “tip jar” feature last September. The new feature is called “Vimeo on Demand” and is available to creators with Vimeo Pro memberships (which are aimed at professionals, cost $199 a year and offer options like more video storage and HD playback).
Creators control price for their videos but have to charge at least $0.99. There’s a 90-10 revenue split after Paypal (s EBAY) or credit card transaction fees, with creators taking 90 percent.
Creators also control geographic distribution and whether their content is streaming-only or downloadable. They can put it up for sale on, on their own website, or both. If they choose to enable downloading, the format is DRM-free MP4.
YouTube (s GOOG) is reportedly planning to start offering subscriptions as an additional monetization vehicle for creators. For now, Trainor said, Vimeo isn’t looking at any type of subscription offering: “The feature is targeted toward the creator, and there are no plans for a viewer package.”