Exclusive Webinar :Gain complete knowledge about how you can invest in global markets during an insightful webinar on April 16 at 11 am. Register Now!
you are here: HomeNewsBusiness

Desi short-video apps to have around 580 million users, grow 16% in 5 years: Redseer

A Redseer report says that the market created by the likes of TikTok and Likee will grow from here on and desi short-video apps will be able to find their fit within this space as quality of content, content creators and interface improves with time.

December 08, 2020 / 09:11 AM IST

The consumption of short-video applications in the country is set to grow four times in terms of minutes spent and will see a 16 percent growth in total users within a span of five years, found out a report published by Redseer on online personalised video consumption in India.

Home grown short-video applications have a massive business opportunity in India, as the country has one of the largest smartphone user bases with internet connectivity and the overall base is also growing at a rapid pace. Going forward players like Josh, Moj, Chingari and Mitron have a huge market to tap, found out by consulting firm Redseer.

In a report Short Form: Rising among cluttered content space, Redseer has stated that India has a large base of young consumers who have access to internet and there is a big gap in entertainment derived from short-video applications which is unfulfilled by over the top (OTT) channels like Netflix and Google’s video platform Youtube.

Close

Big jump

India has the second largest number of smartphone users at 560million just after China which has over 900million. But the country has only 40 percent penetration of such devices, which means that there is an open space available where more consumers can be expected to join the sector and consume entertainment online.

The report has predicted that in the next five years, the number of smartphone users in India will jump to 940million. Out of this overall base, short form video which is being consumed by 275 million users, will grow at a rate of 16 percent and go upto 580 million. Just to put this into perspective, online shoppers could go to 400 million from 104 million, consumers who will buy something online at least once.

This growth will be supported by cheap data costs and highest consumption of data per smartphone. India at $0.09 for a GB of data is cheaper than Italy which is the next cheapest country at $0.43 for a GB of data. Further India consumers 12GB of data per month compared to 9.8GB for China. Further average time spent on a smartphone by Indians is the highest at 288 minutes per day. This number is 264 minutes for China and 210 minutes for Canada, the next two countries on this metric.

Market was created by Chinese apps

While Chinese apps like Tiktok and Likee created the market, Indian short-video apps like Josh and Moj have benefited with Chinese apps getting banned. But the Indian consumer is peculiar in the sense that demand for free entertainment is high but consumers are not open to paying for them. For instance, Netflix has 64 million paid users in the United States alone and the overall paid user base in India is 16million only. Now given Youtube is not the best platform for customised videos, short-video platforms have a big headroom to grow.

Monthly active users for short-video apps have grown over nine times over the last four years. From less than 20million users in FY 16, the base has shot to more than 180million in FY20, as per numbers sourced by Redseer. A large chunk of this user base was actually consuming videos on TikTok. As per data, MAUs for TikTok was 170 million at its peak, indicating more than 90 percent used this channel.

Indian apps have big opportunity

As per market estimates and analysis by Redseer only 40 percent of the TikTok opportunity has been captured by Indian short-video applications. So there is much that needs to be done by Indian players to capture the void left behind by Chinese short-video apps.

Also, looking at favourable rate of growth and prospect of this space, Redseer has predicted that by FY25, there will be around 580million users of which monthly or daily active base of 40 to 45 percent. They will spend close to 75 minutes everyday on these platforms and these apps will report an overall four times jump in user sessions per month. They will be spending 400 to 450 billion minutes per month in FY25 compared to 110 billion in FY 20.
Pratik Bhakta
TAGS: #Startup
first published: Dec 8, 2020 09:11 am

stay updated

Get Daily News on your Browser
Sections