While 40% of TikTok’s market has been captured by the new players, some users are still unwilling to shift for lack of quality, and lesser velocity of content creation.India is the second largest and fast-growing content consumption market with a strong need-gap for free personalised short-form entertainment content, according to homegrown consulting firm, RedSeer report. Titled ‘Short-form: Rising Amidst Cluttered Content Space’, the report highlights how with the number of internet users in India set to grow to 970 million from current 600 million in next 5 years, short-form market is estimated to grow by 4x on total time spent and reach to 400-450 billion minutes a month from the current ~110 billion minutes. The study surveyed 8,000 consumers of which 77% were aware of at least one of the Indian short form apps.
As per the report, Dailyhunt’s Josh has emerged as the most preferred platform on the basis of user experience, followed by InMobi’s Roposo and Times-owned MX Takatak, respectively. Josh led the segment on the back of its ability to decode user’s preferences and quality content through its wide high quality creator base in addition to providing higher reach to creators. Similarly, Roposo is able to provide most of the personalisation needs of users with a sizable library and creative tools required for content creation. On the other hand, MX Takatak emerged among the other players as it provides highest satisfaction with data safety and tools that it offers to content creators.
According to Ujjwal Chaudhry, associate partner, RedSeer Consulting, with content consumption in India growing faster than global growth, users in India need free and bite-sized entertainment, which is not offered by OTT. “TikTok created the industry and post ban on TikTok, new Indian players like JOSH, Roposo, MX Takatak have grown multifold and we have seen a resurgence in the sector. As players increase their content quality further, users and retention would increase, resulting in more than 4X increase in the time spent,” he added.
As per the report, 45% of internet users have used short-form video apps in 2020 and this percentage is set to increase to 60% by 2025. Further, the report cites that India has the highest content consumption per user. In India, users spend roughly five hours a day on their smartphone followed by China with 4.5 hours a day. In India, the content consumption is higher due to continuous content created on over-the-top (OTT) and short-form platforms. Further, in the last 3-4 years, India has witnessed the launch of numerous content apps such as TikTok, Spotify, Netflix, MX, TT Player, etc, and some of these are focused on local content. Thirdly, with the increasing use of smartphones, the rise in need of entertainment on smartphones became a key factor.
The report also highlights that monthly average users (MAU) for short-form content grew 9x in less than five years. Users for such content grew from 20 million users in 2016 to 180 million in 2020. However, after the TikTok ban, the market saw a major void, some of which was quickly filled by new domestic players. Interestingly, while 40% of TikTok’s market has been captured by the new players, some users are still unwilling to shift for lack of quality, and lesser velocity of content creation.
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