China’s short video market may have peaked as total user numbers decline for first time

The overall number of short video app users in China reached 1.05 billion at the end of June, about 300 million fewer than the total in December 2023, according to a report on Monday by broadcasting regulator the National Radio and Television Administration and the short video and film committee under the China Federation of Video and Television Associations.

That data reflects a significant slide in the short video market, which saw a steady increase in users over the past few years – from 648 million in 2018 to more than 1 billion in 2023 – that enabled platforms led by Douyin, the Chinese sibling of TikTok, to generate hefty revenue through targeted advertising, live streaming and e-commerce.

Still, the annual growth rate of users slowed from 19 per cent to 4 per cent during that same period.

“Regardless of whether [the market’s user numbers] falls or continues to grow, the core [implication] is that the industry’s scale has approached a high level and overall growth is bound to slow down for all participants,” said Ma Shicong, an analyst at market research firm Analysys.

Analysys’ own data indicated that the number of short video users on the mainland crept up to 1.059 billion at the end of November.