Short Video Platform Market Trends

Growth Drivers

• Rapid Surge in smartphone & internet penetration: The ever-increasing access to smartphones and high-speed mobile data, especially in developing economies, has led to strong user adoption in the short video platform market. In this context, India Brand Equity Foundation in January 2025 stated that India is expanding to become the second-largest smartphone manufacturer, wherein the government programs such as Make in India and the PLI scheme have encouraged mobile production from meeting just 25% of domestic needs a decade back to 97% in 2024. It also mentioned that, with more than 200 manufacturing units and continued policy support, the country will accelerate both content consumption as well as platform reach. Therefore, the surge in smartphone production is expected to drive consistent business in the market.
• Rise of creator economy: This, coupled with influencer monetization, is prompting a highly profitable business environment for the short video platform market. Also, growing opportunities for creators through ad revenue sharing, brand collaborations are attracting millions of new content producers, which in turn is boosting platform stickiness. In December 2024, Snapchat introduced a new unified monetization program, which marks a significant step in expanding creator earnings by placing ads not only in stories but also in longer spotlight videos. The company also revealed that Spotlight viewership is rising 25% year-over-year, opening new revenue avenues for creators, particularly for videos over one minute. Since the number of public creators has almost tripled, such plans continue to scale rewards and community growth.
• Shift toward bite-sized, on-the-go content: The viewers are prioritizing the short-form, easily consumable videos, which is benefiting the prominent players involved in the short video platform market. According to the report published by Research Nester video streaming market is poised to showcase extensive growth during the forecast period, wherein the surge is primarily fueled by the overwhelming consumer preference towards personalized, accessible entertainment available anytime and anywhere, leading to a steady decline in traditional TV viewership. Therefore, the proliferation of affordable and diverse monetization models is also crucial for expanding its global user base and revenue potential, where the engagement rates and shorter attention spans make short video an ideal format for entertainment, news, education, and commerce.

Challenges

• Monetization pressure: Despite the presence of extensive user engagement, monetization and revenue stability are a major pressing challenge in the short video platform market. Most platforms rely on advertising revenue, which is highly subject to fluctuations in market conditions as well as advertiser demand. Also, in terms of app purchases, virtual gifting, and subscriptions, they are emerging as revenue streams, but they are yet to reach the scale needed for long-term sustainability. Besides, platforms must need to compete to attract high-quality creators, who expect better revenue shares and incentives, further straining profitability in this field. Furthermore, the cost of investing in AI-based content recommendation engines and security can be expensive, creating hesitation among players to make investments in this field.
• Intense competition and user retention: This is yet another factor restraining manufacturers from witnessing rapid growth in the short video platform market. Both the established and emerging entities in this field are constantly striving to grab consumer attention. Simultaneously, the user acquisition costs are rising as platforms are making heavy investments in marketing campaigns, creator incentives, and content partnerships. In this context, retaining users is extremely challenging since audience preferences are volatile and content fatigue can set in quickly. Therefore, the aspect of continuous demand for fresh, engaging, and personalized content creates pressure on platforms to focus on innovation more consistently, wherein failure to meet these expectations can result in high churn rates, hence limiting market growth.