Short-form content
Short-form videos have emerged as a dynamic segment within India's vibrant online ecosystem, capturing the attention of Gen Z and Alpha generations who define contemporary net-savvy culture. Originating in the late 2010s, these bite-sized clips found widespread acclaim particularly during the 2020s, thanks largely to apps like TikTok, YouTube Shorts, and Instagram Reels.
Characteristically presented vertically and rarely exceeding three minutes, they serve not just as standalone pieces of creativity but also as gateways to broader engagement across various platforms. Often repurposing movie or entertainment excerpts into relatable memes, these shorts offer both instant gratification and deeper storytelling capabilities, occasionally serving as teasers for longer narratives hosted elsewhere by the creator. Thus, they embody the pulse of current digital communication, reflecting our society's evolving relationship with time and technology.
HistoryEdit
The 2010s witnessed a digital revolution with short-form video content gaining massive traction across social media. Snapchat kickstarted this trend in 2012 by introducing 10-second video-sharing capabilities, but the format truly exploded in popularity with Vine’s launch a year later. This platform, known for its strict 6-second video limit, not only went viral globally but also created a wave of homegrown internet stars like Logan Paul, Liza Koshy, and Lele Pons, alongside international favourites such as Kurtis Conner and Danny Gonzalez.
Instagram—ever the trendsetter—quickly adapted to this shift. In 2013, it rolled out 15-second video posts as a direct response to Vine’s success. Over time, the app expanded its video offerings, eventually adding features like Instagram Reels to capitalise on the booming demand for bite-sized, engaging content. This era redefined online entertainment, turning creators into overnight celebrities and setting the stage for today’s influencer culture.
The short-video landscape saw major shifts after Vine shut down in 2017. While most creators switched to YouTube for longer formats, TikTok stole the spotlight by merging with Musical.ly in 2018 – becoming the go-to app for desi audiences and eventually a global mega-hit. Not everyone gave up on the bite-sized magic though: Vine’s founder Dom Hofmann tried reviving the trend in 2020 with Byte (later rebranded as Clash and Huddles), but the real game-changer came from YouTube.
Seeing TikTok’s unstoppable rise, YouTube launched Shorts in 2021 — 60-second clips that hit refresh on the format. The gamble paid off spectacularly: 50 kharab (5 trillion) views flooded in within just six months, prompting YouTube to extend Shorts to 3 minutes by 2024. This marked a full-circle moment — from Vine’s 6-second experiments to platforms now battling for dominance in an era where even a minute feels “long” for Gen Z viewers!
Business model of short video platforms from a global perspectiveEdit
Main business model of short video platformsEdit
1. Advertising revenueEdit
Current Monetisation Approach Ads remain the primary earnings source for short-video platforms. These platforms deploy three key strategies:
- In-feed promotions (ads within regular content scroll)
- Skippable/pausable video ads between clips
- Brand partnership campaigns
Take TikTok's model — their ad system studies users' preferences, watch history, and engagement patterns to show tailor-made brand content. This data-driven method reportedly boosts customer response rates.
Emerging TrendsEdit
With viewers increasingly finding regular ads intrusive, platforms now experiment with:
- AR-powered ads (like virtual make-up trials or product visualisations)
- Hashtag challenges where users create content promoting brands organically
This shift aims to balance revenue generation with maintaining user engagement through less disruptive, experience-driven advertising formats.
2. Live broadcast rewardsEdit
Live streaming has emerged as a crucial income source for creators on short video platforms. Through features like virtual gifts, viewers can financially support hosts during broadcasts, with the platform retaining a commission from these contributions. This model is widely adopted by platforms globally—whether China’s Douyin (TikTok) and Kuaishou or international players like Twitch and YouTube Live. However, its success heavily depends on regional factors. Cultural preferences (e.g., gift-giving habits) and local regulations can significantly impact its viability, with some countries even imposing restrictions on such monetisation methods due to policy concerns.
3. Membership subscriptionEdit
Premium subscription plans are being introduced by platforms as an alternative way to monetise short videos. Services like YouTube Premium and TikTok’s Live Subscription allow users to access perks such as ad-free viewing, exclusive creator content, and special interactive features in exchange for a monthly fee. While this approach creates steady recurring revenue for companies, it currently serves more as a supplementary income stream in the short video space rather than the primary focus.
E-commerce live streaming: global business opportunities for short video platformsEdit
E-Commerce Live Streaming: Merging Entertainment with Instant BuyingEdit
Live shopping on short video platforms has become a cornerstone of monetisation, blending the fun of bite-sized content with seamless online shopping. The model thrives on a "content-driven marketing meets instant purchasing" approach, structured into three key stages:
1. Content & Product Showcase: Hosts (or brands) use live streams to demonstrate products creatively — think hands-on demos, honest reviews, and highlighting limited-time deals. For example, showing a dress being styled live or testing a gadget’s features in real-time helps viewers visualize ownership.
2. Real-Time Engagement & Trust-Building: Viewers engage via live chats, reacting with comments, questions, or likes, which fosters personal connections. Hosts address doubts instantly (How durable is this bag ?) and use relatable storytelling (I’ve used this face cream for months — see my skin now!). This builds trust through authenticity and social proof, making shopping feel like a shared, gamified experience.
3. Frictionless Purchase: Embedded “Buy Now” links let users tap once to complete transactions without leaving the app. This cuts down decision delays — a viewer inspired by a makeup tutorial can grab the product instantly, boosting sales conversions.
Development trendEdit
China holds a leading position in the realm of e-commerce live streaming, with platforms like Douyin establishing a comprehensive live e-commerce ecosystem. The sales revenue from various types of live broadcast e-commerce is projected to reach one trillion yuan, attracting increasing attention from cultural and tourism enterprises, which highlights the significant potential of live e-commerce. Douyin's e-commerce success is bolstered by precise recommendation algorithms that provide brands and individual merchants with a steady flow of traffic, allowing small and medium-sized businesses to achieve efficient sales.
Despite the notable success of e-commerce live streaming in China, challenges remain for its promotion in international markets. However, some platforms are actively pursuing this opportunity. For instance, TikTok has been at the forefront of promoting the live streaming sales model in Southeast Asia and has piloted "TikTok Shop" in the UK, enabling brands and influencers to sell products through live streaming. Additionally, Amazon has introduced its own live streaming shopping feature, leveraging its robust supply chain capabilities to bring live streaming shopping to the European and American markets.