New online platform wants to take on YouTube

Tue Mar 18, 2014 5:40am IST

Visitors stand in front of a logo of YouTube at the YouTube Space Tokyo, operated by Google, in Tokyo February 14, 2013. REUTERS/Shohei Miyano/Files

Visitors stand in front of a logo of YouTube at the YouTube Space Tokyo, operated by Google, in Tokyo February 14, 2013.

Credit: Reuters/Shohei Miyano/Files

Related Topics

Stocks

   

REUTERS - Wonder PL, a new video platform for lifestyle content that launched on March 13, is taking direct aim at YouTube and Vimeo while hoping to capitalize on the soaring popularity of online video.

Backed by Universal Music Group, Qualcomm Ventures, former Apple (AAPL.O) executive Pascal Cagni and a personal investment by Vice Media President Andrew Creighton, Wonder features topics from wellness to food to entertainment targeting women.

Wonder if differentiating itself from YouTube by targeting professional content makers to use its platform for an annual fee. YouTube is free to anyone who wants to upload a video.

"We want to be the Whole Foods of video," said Sofia Fenichell, Wonder founder and CEO. "YouTube is Wal-Mart."

Wonder is going after brands and content creators such as the National Film Board of China and chef Tom Aikens. Wonder charges an annual fee of $300 for its members to use the platform to upload video.

"We know everyone is going to produce more video," Fenichell said.

While more people are uploading and consuming video, it is a crowded market. Google's (GOOG.O) YouTube, which is ad-supported, has more than 1 billion unique users per month who watch more than 6 billion hours of video.

IAC/Interactive Corp's (IACI.O) Vimeo provides a platform for professional users too. Anyone can post video to the Vimeo platform for free but it charges up to $199 for more comprehensive features like additional storage, support and the ability to sell video on demand. (Vimeo takes a 10 percent cut.) Vimeo has over 22 million registered members and reaches a global monthly audience of about 150 million.

Fenichell said Wonder will depend on subscription revenue for now but could eventually start providing opportunities for sponsored content. People view videos on Wonder in an ad-free environment.

"The industry currently trades a free or nominal membership fee in exchange for taking very high platform commissions," she said.

"We believe this is an unsustainable model for creators who need to generate value from their work."

(Reporting by Jennifer Saba in New York; Editing by Tom Brown and Cynthia Osterman)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Obama In India

Reuters Showcase

RK Laxman Dead

RK Laxman Dead

'Common Man' cartoonist RK Laxman dead at 93  Full Article 

Banking Revolution

Banking Revolution

India turns to corner shops, mobile phones for banking revolution.  Full Article 

Nuclear Group

Nuclear Group

China urges India to take steps to satisfy standards of NSG  Full Article 

Gold Market

Gold Market

Chinese gold demand holds up ahead of holiday, Indian buying weak  Full Article 

India-U.S. Relations

India-U.S. Relations

Column - U.S. and India should join to balance China's rise  Full Article 

Padma Bhushan

Padma Bhushan

India honours Bill Gates with civilian award  Full Article 

Fashionable Modi

Fashionable Modi

When Modi met Obama, his name was all over - his suit  Full Article 

Nuclear Deal

Nuclear Deal

Obama reveals nuclear breakthrough on landmark India trip  Full Article 

Australian Open

Australian Open

Venus fireworks illuminate Australia Day  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage