Sellers on the VHX currently launched with in-app subscriptions in the Apple and Roku app stores include MHz Networks, which offers foreign-language programming for U.S. consumers, as well as YouTube channels Black&Sexy TV, and Yoga with Adriene. Android in-app subscriptions are coming soon.
Vimeo, owned by Barry Diller’s IAC, announced the acquisition of VHX earlier this month. To date, VHX clients have sold over $9 million of video content and subscriptions to some 1.5 million users.
It’s questionable how much the feature will really move the needle for VHX’s subscription VOD partners simply by letting someone purchase directly on an Apple or Roku device. On the downside, Apple charges a 30% fee on top of the price of any digital content or service, while Roku charges a 20% fee. For in-app subscriptions, VHX charges the seller $1 per subscriber per month (plus platform fees).
But according to Casey Pugh, VHX co-founder and head of product, there’s huge potential for converting viewers into paying subs via in-app purchases. Viewers who discover a video app in an app store are 33% more likely to start a free trial than viewers on the web, he claimed.
VHX touted other features of its in-app purchasing features, including giving sellers to option to offer flexible free-trial lengths to customers for both monthly and annual subscriptions. In addition, purchases through Apple accounts come from credit cards to enable a “one-click” checkout in multiple foreign currencies.