India's short-form video apps, which boomed after the government banned China's TikTok, are on the "cusp of a breakout", according to research from Redseer.
Monetisation of Indian short-form video apps such as Verse Innovation-owned Josh and ShareChat's Moj—which acquired MX Takatak—could reach $8–12 billion by 2030, with major revenue streams in the form of advertising, video commerce, and live gifting.
While Redseer didn't disclose estimates on the current size, it's a nascent market in India still even as the user count has surged.
"Indian short-form video apps have seen constant growth in adoption and engagement," the research firm said in a report. "Leading players have come close to global players in terms of scale while having similar engagement levels."
The creator economy "will potentially drive monetisation along with advertising and live commerce", the report said.
Social media platforms such as YouTube, Instagram, and now homegrown apps such as Josh and Moj have been at the heart of the so-called burgeoning creator economy spawned in the last decade, and more so in the last six years with the launch of Reliance's Jio.
The availability of cheap, high-speed internet and increased smartphone penetration have acted as catalysts for the rise of influencers and independent creators.
Indian short-form apps are yet to realise their advertising potential, though this is changing rapidly, Redseer said. "Currently, short-form video contributes less than 1% of the digital ad spend, while it contributes to 7–10% of overall time spent on content. There's a mismatch between ad spend and time spent," the report said.
To be clear, short-form videos in this research report refer only to standalone apps and do not include Instagram Reels, Facebook Watch, or YouTube Shorts.
As for video commerce as a revenue stream, Redseer said short-form video platforms are expected to hold up to 40% of the $8–11 billion pie, with fashion and beauty emerging as the main categories.
"Amazon India launched its video commerce feature with 150 creators in September before the festive season, while Meesho debuted its video commerce feature during the festive sale," Redseer said. "Flipkart has also partnered with Moj to enable video and video commerce experiences at scale."
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