Vimeo acquires VHX

The video-sharing website Vimeo said that it had acquired streaming start-up VHX for an undisclosed sum. An hence from now on Vimeo will let video-makers set up their own subscription video streaming services similar to Amazon and Netflix with smartphone apps and a website, using Vimeo's technology.

It is to be noted that online talent agency Full screen and video giant YouTube have also launched "premium" services to bolster income and hence analysts state that the video-streaming market has "increasingly crowded". Even prominent video-makers such as Disney,Showtime and HBO are turning to subscription online video to counter falling cable television revenues, as consumers increasingly reject expensive cable television packages.

Amidst all this Vimeo chief executive Kerry Trainor said the online video industry was"expanding from a few, mainstream subscription services into a flourishing world of interest-based streaming channels" and that Vimeo would help establish the "next generation of premium video channels".Also, the company, which does not publish its earnings, said 1.2 million video purchases had been made on its website since it launched in 2004.