I remember going to daily motion spcifically to watch stuff that got DMCA'd out of youtube, the problem being I had no reason to stay there, the content was too sparse, even considering the amount of illegitimate content published
Vimeo decided awhile ago that they weren’t going to be a “shareable video” platform. That, combined with their pretty user-hostile UI, has limited their growth.
My guess is that they looked at the costs of hosting trillions of hours of video and decided that only a corporate giant like Google would ultimately be able to afford it.