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YouTube May Start to See Competition

Image Credit: Vessel

YouTube (NASDAQ: GOOG) may have a rival in the realm of online videos. Vessel, a video service with a different business model than YouTube, launched last month and offers videos from some of YouTube’s top vloggers three days in advance, according to Vessel’s website. At the helm of this new business model is former Hulu CEO Jason Kilar. 

Subscribers to the new video service pay a $2.99 monthly fee in exchange for access to top videos 72 hours in advance. After this time period, the vloggers are free to upload their content on other platforms.

“We’re not focused on traditional TV, we’re not focused on traditional film, but everything else-some of the things that are most popular on the Web today,” Kilar told CNBC.

The new site, launched just last month, has already signed top YouTube names like Taste Made, CNBC reported. More conventional content providers have also signed on with Vessel including A&E and Time Inc.

Vessel provides a more professional level of video quality and will target a 14-24-year-old market, CNBC reported. The videos will play some advertisements; however, will only run for five seconds.

“Part of making media better is to serve the video creators in a very, very strong way, so we’re being generous with the fact that 70 percent of all advertising goes back to the video creator and subscription dollars go back to the video creator as well,” Kilar said. “So to give you a comparison, on the free Web, a video creator typically earns about $3 per 1,000 views. One Vessel we project that they will make over $50 per thousand views.”