You’ve likely heard of CapCut if you’re acquainted with the video content editing app market. It’s a popular app made by ByteDance, a Chinese business that also owns TikTok. Quick mobile video editing for TikTok, Instagram, YouTube, and other social media sites is possible using CapCut.
Chinese financial media site Baijing said that CapCut video editing software owned by TikTok’s parent firm ByteDance, had more than 200 million active monthly users.
With ByteDance’s TikTok facing limitations and investigations on several fronts, CapCut’s achievement comes in the midst of an environment that is becoming more unfriendly for China-developed applications in the US and European markets.
With these numbers, CapCut becomes ByteDance’s second product with an international emphasis to surpass 200 million MAUs.
What is the importance of this and impact on video editing?
Shenzhen Lianmeng Technologies, a startup that ByteDance purchased in 2018 for $300 million, was the company that first created CapCut. It was released as Jianying in China and is compatible with TikTok. It includes a variety of video editing features, filters, audio and visual effects, and video templates.
Jianying was made available in other countries by ByteDance in April 2020; in December 2020, CapCut was given a new name.
CapCut had more than 200 million active users in January, according to Baijing’s study. CapCut also made it into China’s top 30 list of non-game applications for iOS and Android smartphones during that month. Its January global sales was 800 thousand dollars, more than half of which came from the American market.
Although Meitu’s editing tool BeautyPlus, which leads the list with almost $2 million in monthly revenue, still outperforms CapCut in terms of revenue, the latter has had tremendous growth and managed to reach considerable revenue in just four months.
Capcut’s growth and revenue model
CapCut has primarily increased its user base by making its services available for free for two years. Also it does in-app advertisements on Douyin. CapCut began charging for premium features in September 2022; customers may access these features through monthly or yearly subscription plans.
The costs associated with CapCut Pro are based on cloud storage and premium features. Cloud storage costs $0.99 per 10GB, $1.99 per 100GB, and $5.99 per 1,000 GB per month. The cost of the premium features is $9.99 for a single month, $7.99 for a recurring monthly fee, and $74.99 for a whole year.
CapCut announced a PC version in October 2022 as part of an upgrade, making it more appealing to both individual users and enterprises. This version is interoperable with the majority of popular social networking networks worldwide.
Also, the app offers a creator recruiting scheme via which successful video makers may earn up to $1,000.
Capcut Content Creator Program
ByteDance is aware of the importance of creators. They got to see the creative movement firsthand as TikTok took off internationally and around the globe. ByteDance is now applying those same lessons to CapCut in order to implement a creator-led growth plan.
CapCut is concentrating on gaining a lot of active usage by promoting template development within the app, even if they aren’t precisely taking the influencer path as their rival Adobe has. This is what the CapCut Creation Program appears to look like in the US.
In essence, they are offering up to a $1000 bonus for viral templates as an incentive for producers to work on well-liked templates or editing techniques in their programme.
TikTok recent updates
TikTok has established a target to reach 1 billion daily active users globally by the end of 2022, demonstrating the app’s ongoing development despite several inquiries and limitations from governments all over the world.
After similar actions in the US, Canada said that it will prohibit the use of TikTok on equipment controlled by the government. Only a few days earlier, the EU had established similar limitations for its personnel.
ByteDance’s video platform might be fined $29 million by the UK’s Information Commissioner’s Office (ICO) for failing to protect children’s privacy.
Zhi Ying, a vice president from Douyin, was transferred earlier this year to TikTok to oversee the latter’s product and content divisions as ByteDance, a Beijing-based startup, sought to include more of its senior executives in TikTok’s growth.
Summary
- Through investments into “creator programs” that compensate artists for the best edits/templates, ByteDance is attempting to commercialize CapCut, which launched in 2020.
- The firm hopes to compete for customer base with other well-known mobile video editing competitors like Adobe, Canva, and VEED.
