The past few years have presented significant challenges for video editing apps as TikTok’s CapCut editor quietly captured market share from its competitors. Initially, CapCut offered its service for free, which helped build its popularity. When CapCut inevitably began monetizing, it became evident that it could seriously disrupt the established players—unless they made significant changes. However, little adaptation has been seen from the leading apps, which has allowed CapCut to further consolidate its position in the market.
Major Market Shifts in Revenue Share
Data from App Intelligence via AppFigures highlights the revenue changes in recent years. In January 2023, the top five video editing apps—Facetune, Splice, Picsart, VSCO, and Lightroom—held a combined 96% revenue share within this group, while CapCut held a modest 4%. In just 22 months, by October 2024, CapCut’s revenue share has surged to 42%, leaving its competitors with a collective 58%. This shift reflects a remarkable $38 million net monthly revenue increase across these six apps.
CapCut’s Potential for Market Dominance
At its current growth rate, CapCut is on track to cross the 50% revenue share mark soon, positioning itself as a dominant force in the video editing space, notes NIXSolutions. Unless competitors adopt transformative strategies, CapCut’s dominance may become more pronounced. We’ll keep you updated as this story unfolds and as industry leaders react to this dynamic shift.