Indian shortform apps have a monetization opportunity of $19Bn by 2030, and by 2025 they are expected to double their monthly active user base to 600 million, said strategy consulting firm Redseer Strategy Consultants.
This growth is largely attributed to the fact that Indians are heavy users of mobile entertainment and spend close to 156 minutes per day viewing entertainment content on their smartphones. Further, the report released by Redseer also states that the next wave of internet growth is likely to come from Tier 2 cities and beyond, regions which have a higher propensity to view shortform videos. Additionally, rapidly improving quality of content and algorithms for Indian Short Form apps is another significant driver of growth.
As far as India’s Short Form sector is concerned, it is expected to witness close to 600 million monthly active users by 2025, which will be 67% of all smartphone users.
“Indian Short Form apps are witnessing phenomenal growth as compared to other established platforms, this can be attributed to their low decision fatigue, language localization, recommendations, genre variety and local creator influence. In fact, on average, an Indian user consumes close to 38 minutes of Short Form content each day”, said Mohit Rana, partner at Redseer.
Redseer believes that the Indian apps are now poised to start monetizing their large and engaged user base through advertising, video commerce and to a lesser extent, gifting. The report concluded that by 2030, shortform can take close to 10-20% of the overall Digital Ad pie. Further, video led commerce in Short Form apps is another big opportunity; and China is a testimony to this given that in the last 4 years alone, video led commerce in China grew 100X.