Peertube seems perhaps a more credible competitor in that sense, by making hosting cheaper. As long as the creators can fund themselves with Patreon, merchandise or whatever else.
Also what guarantees are there when you come along and upload 10+ TB of archive footage to Peertube the network decides that's far too much? Their creator sign up page has an instance filter for "At Least 50GB" (which is quaint). And sure when you get the results back many instances say "Unlimited" storage, but there's "unlimited" and "get lost".
This isn't even remotely related to Vimeo or YouTube. If you're talking about movies legitimately published by the rights owners not being DRM'd on Vimeo, then there's nothing stopping the studio from uploading a DRM-free version to YouTube as well. IF you're talking about piracy simply because Vimeo doesn't have Content ID, then that's also just a failure of Vimeo and/or the studios not really caring about 480p streams with relatively few views.
This is of course something that is unrelated to the greater discussion in this post, but it have been something I have found different on vimeo compared to elsewherein the past.
You'll find other types of content, but Vimeo is not try to compete with YouTube's content scope. You won't find 'How to unblock your kitchen sink with baking soda' on Vimeo, or 'Learn Javascript in 60 mins', but you'll find these (and dozens more) on YouTube.
But I would rather talk about the similarity between Vimeo and YouTube - they both are walled gardens. I would rather have many Vimeos that federate.
Youtube feeds me a diet of videos that are hard to turn off, spanning literal decades and with some really weird stuff thrown in (and based on the comments, others have same experience - I'll be on a 10 year old video with positive comments from a day ago).
A common youtube quote:
No one: I want to see five year old archery videos Youtube: Here, try this