Home Business Homegrown short video platforms clock user base of over 250 million: Report

Homegrown short video platforms clock user base of over 250 million: Report


New Delhi: Homegrown short video platforms currently have a user base of over 250 million with approximately 65% of them hailing from tier-two cities and beyond, according to a report by consultancy firm Redseer. 

As 40% of users have been conducting online transactions on these platforms, the opportunities for monetization are manifold, the report added.

While global short-form video (SFV) platforms may be popular among urban users, Indian SFV platforms have witnessed greater uptake among audiences in non-metro and semi-urban areas mostly owing to the availability of quality regional-language content created by local talent. Around 45% of Indian SFV users reside in semi-urban and rural centers and interact with a diverse set of internet platforms ranging from gaming to e-commerce.

“The growing popularity of Indian SFV platforms is a welcome development as it has furthered the ambit of digitization in India and is maximizing value for platforms, brands and end-users through its data-led and language-inclusive approach. With the rise in disposable income among the dominantly tier-two plus users, India’s SFV landscape holds multiple possibilities for monetization. New-age models like live commerce and live gifting can prove to be feasible in raising the bar for monetization,” Mukesh Kumar, associate partner at Redseer said in a statement.

Further, 64% of the user base on Indian SFV platforms comprised individuals up to the age of 25 years. Less than 3% of Indian SFV users are mature users.

SFV platforms are home to original and relatable content which is seen to have grown to 99% in 2023, in comparison to 92% in 2022, the report said.

The rising popularity of user-generated content platforms has helped create an ecosystem of 3.5 million influencers or new-age celebrities who serve as the growth engine of SFV platforms. These influencers can be classified into four archetypes namely micro, macro, mega, and elite who can earn more than 1.5-2 lakh per month through advertising and live commerce. As the platforms mature, their earnings diversify across platform payouts, brand deals and virtual gifting.

Brands across categories are beginning to utilize homegrown SFV platforms given their value proposition, growing user base especially in tier-two plus regions, monetization potential and the volume of online transactions. Currently, beauty and personal care (BPC) as well as fashion are already collaborating with new-age influencers to tap into larger audiences. Despite an ongoing funding winter in the startup landscape, advertorial spending is gradually stabilizing across SFV platforms, and experimentation is underway to identify the model of advertising that can provide maximum return on investment, the report said.

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Updated: 08 Nov 2023, 03:32 PM IST

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