I think their old plan was like $200 / year (I didn't use them personally since I didn't have a custom platform running) and it felt reasonably priced for that use case. When I eventually release my custom platform I was planning to use them and be happy about it. Thankfully I haven't gotten to the video playing component of the platform yet because I wouldn't want to use them under this new pricing strategy.
Wistia's pricing plans aren't much better (they are a competitor to Vimeo). It's $1,200 / year but also 25 cents per video on top of that. If you have a lot of small videos you get crushed. Suddenly 400x 5 minute videos means another $100 / month ($2,400 / year total). I don't understand why they would make their pricing model based on something that punishes folks who make smaller videos. Breaking up a single 50 minute video into 10x 5 minute videos shouldn't cost you 10x the price IMO.
It's unfortunate because it might take you years of producing videos before you even make a few hundred bucks a month, $150-300 a month on day 1 is a ton relative to that especially since that's only 1 component of your costs, then there's web hosting, payment provider transaction fees, refund fees, various taxes, etc.. Kind of makes it hard to get into a position to succeed unless you're able to invest many thousands of dollars up front.