Verizon said on Thursday it is buying Vessel – an Internet video startup from former Hulu head Jason Kilar – for an undisclosed sum, but is planning to shut down the service in its current form later this month.
In its deal announcement, Verizon said the acquisition represents a “smart pairing” of technologies that will help it accelerate its over-the-top video efforts.
Launched in 2015, Vessel offered a selection of video content from across the Internet from a monthly subscription of $2.99 or an annual cost of $20. The service honed in on short-form content in a range of categories, and offered early access to videos 72 hours ahead of their public release date.
According to both Verizon and Vessel, the deal includes the technology and software behind the Vessel platform, the product itself, and the team behind the creation, which will be integrated into Verizon’s visions for a video future. But it seems that Vessel’s service in its current form won’t survive the deal.
While Kilar said in a Thursday blog post the technology behind Vessel will “live on at Verizon in ways that will become apparent in the months and years ahead,” he said Vessel will be sunsetting its service on October 31. Existing subscribers won’t be charged for their October access and those on the company’s annual rate plan will be refunded back to the beginning of this month, Kilar said.
Kilar said he will stick around to ensure a smooth transition to Verizon, but said Vessel co-founder and CTO Richard Tom will take the reins on “all things technology, product and team going forward.”
The move follows Verizon’s July hire of former YouTube executive and head of Vessel content Ivana Kirkbride. The carrier brought Kirkbride on board as its new Chief Content Officer for its go90 mobile video platform.
While neither Verizon nor Vessel specified how the carrier plans to use the assets from the acquisition, it seems like Vessel’s focus on short-form content lines up well with Verizon’s focus on the same with go90. And it won’t take long for those assets to come into play.
In step with Vessel’s sunset, Verizon said the acquisition is expected to close later this month.
