Yes - I looked into Vimeo too.
Its pricing is reasonable and ad free. They are an alternative hosting company that offers something different than Youtube.
Have you read their licensing agreement too?
Some businesses can use Vimeo or other similar services for promotional videos if they are OK with the licensing terms. As I read it, Vimeo does not want to be responsible for your video on their site so you have to be OK with the video being propagated or released out of your control. It allows them to not only host your video, but include it in searches to find your video in the library of videos. It may also allow them to use your video in promoting their own business - either as an example of their service. It may also allow the video to be used in other conditions. What those might be I could only guess at.
In summary, you have to grant them the copyright to your video so that they can host it and use it within their business format. I believe they want to create huge libraries of videos which turn into another advertising opportunity for them - either placing ads beside your video or on the search pages for all videos which allows them to host your video ad free if they user clicks on your video from your website. They appear to want to use low-costs videos to build up a clientele of companies that want more services which bill out at higher prices.
While there is nothing wrong with that, some companies don't want to release their video content under that arrangement. While it works for others.
Regardless, Vimeo probably uses VP9 when it can and Flash when it can to avoid the H.264 charges since their per monthly charge is low. So they juggle multiple encoder formats to work around the compatibility and cost problems.
Yes - Destiny is shooting to compete with Vimeo which they failed to deliver on last year. There are other markets besides that corporate video hosting market.
