ByteDance’s video editing app, CapCut, is rising rapidly despite an uncertain future in the U.S., much like its sibling app, TikTok.
Launched in China in 2018, CapCut quickly gained popularity. Two years later, this sibling app to TikTok expanded globally. Initially, ByteDance’s video editing tool was free to use. However, by the end of 2020, the platform transitioned to a subscription model.
According to Digital Information World, CapCut’s meteoric rise is closely tied to TikTok’s success. The widespread popularity of the short video app has driven a surge in demand for quick clip editing tools among its users. CapCut is highly regarded for catering precisely to the needs of TikTok enthusiasts.
This app comes packed with an array of professional video editing tools, trend-setting effects, and intelligent features. CapCut’s functionalities are user-friendly, allowing users to create short videos without spending much time. The video formats are optimized for quick sharing on platforms like TikTok and Instagram.
According to Sensor Tower statistics, CapCut now boasts over 300 million monthly users, with 81% accessing the app via mobile devices. In the first quarter of 2024, the tool generated a staggering $59 million in revenue, marking a 436% increase compared to the same period last year, as estimated by AppFigures.
CapCut’s soaring popularity poses a significant threat to Adobe, a company that has long dominated the creative software market for PCs.
According to Bloomberg, Jalen, a TikToker with nearly 20,000 followers, is drawn to CapCut because of its user-friendly interface and the ability to watermark uploaded videos with links.
Tyler Radke, an analyst at Citigroup, suggests that ByteDance’s tool, with its widespread adoption, poses a direct threat to the user growth rate of Adobe Premiere Pro and After Effects. While many professional filmmakers still rely on Adobe for complex projects, an increasing number are turning to CapCut for simpler productions. “Compared to Adobe, CapCut is not as feature-rich, but it’s incredibly accessible,” freelance commercial filmmaker Brianna Thompson told Bloomberg.
A ByteDance spokesperson declined to comment. Meanwhile, Adobe has released several streamlined versions of its professional video editing suites, targeting general users to compete with emerging apps. However, these efforts have yet to yield significant results.
The Chinese video editing app doesn’t just threaten Adobe. Canva, the Australian software company, is also vying to outpace CapCut by expanding its multimedia features. Rob Kawalsky, Canva’s Head of Product, stated that Canva has been “continuously investing in video.” Compared to last year, the number of video creators on the platform has increased by 44%, a fraction of CapCut’s explosive growth.
CapCut’s global conquest mirrors that of TikTok. The app has seen rapid development but also faces potential risks. As TikTok navigates challenges to continue operating in the U.S., there are growing concerns that CapCut might soon face similar scrutiny.
