The last couple of years have been a rough year for video editing apps. I'm not talking about the 30% drop in demand or the 140% increase in revenue across the top apps.
instead I'm talking about CapCut, TikTok's video editor that's been quietly gaining a tremendous amount of market share from the incumbents.
If you've been following me for long enough you know I've been keeping an eye out for CapCut for quite a while. Pretty much since its launch.
When it was free I knew they were aiming to gain popularity and when they inevitably started monetizing I knew it was game over for the incumbents - unless they evolve drastically.
And they... didn't really. You can see that by the major shift in market share moving from the top 5 video editing apps and to CapCut.
I grouped Facetune, Splice, Picsart, VSCO, and Lightroom together and compared their revenue to CapCut's over time.
Our App Intelligence shows that in January of 2023, the top 5 apps commanded 96% of the revenue in the 6-app group leaving CapCut just 4%. Fast forward 22 months and things are much different.
As of October 2024, CapCut's share of revenue rose to 42% leaving the incumbents just 58% to fight over. That's more than 10% the share in a market that monthly revenue rise by $38M (net) across all six apps.
it won't take long for CapCut to cross 50%. The road to complete domination will be short. Unless the incumbents do something really drastic.
Will they?
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