No results found. Please try again.


Short-form Video Changes Entertainment in China

This article will discuss a key trend emerging in China’s online entertainment vertical, which is the increasing popularity of short-form videos.


Short-form video (SFV) apps, which allow users to create videos in 15seconds to several minutes, started to gain traction emerged as a new online entertainment format from 2017. As of now, SFV has become the largest online entertainment vertical in terms of user time spent, and the 4th largest traffic source (in terms of total Daily Active Users) following social media (more specifically, WeChat), e-commerce (Taobao, PDD, and JD) and online videos.

According to iResearch (Nov 2020), China now has the world’s largest user base of short-form videos, representing approximately 80% of users of short video platforms globally in 2019. The average daily time spent per DAU on SFV platforms is estimated to increase from 67.0 minutes in 2019 to 110.2 minutes in 2025E. Total revenue size of SFV will reach Rmb150.6bn/211.0bn in 2020/21E, +50%/40% YoY.

Main Business Models and Monetization

There are currently two major SFV players, namely ByteDance (Douyin, Watermelon and Volcano short-form video platforms) and Kuaishou.

  • Kuaishou: According to Kuaishou prospectus, the platform mainly monetizes traffic through live streaming, advertising, e-commerce and other services (such as online games, education, and paid content). In 1H20, Kuaishou has a MAU of 776mn (incl. apps and mini-programs) and records total revenue of Rmb25.3bn (+48% YoY), with live-streaming/online marketing services (advertising)/others accounting for 69%/28%/3%.
  • Douyin: It is the main short-form video app of ByteDance. The company also has other short-form video apps including Watermelon and Volcano. Douyin was initially popular amongst younger generation users in Tier 1 and 2 cities and is now expanding to lower-tier cities. Douyin’s strong AI-based recommendation algorithm uses 100+ tags (categories) for user profiling and pushes the most relevant content to users. It tends to give more traffic weight to popular content, which enables massive traffic aggregation for top content creators and KOLs (key opinion leaders).

    Douyin mainly monetizes traffic through advertising, e-commerce, and other services. Douyin’s 1) huge advertising inventory leveraging its traffic base, 2) strong data analytics capabilities which can help advertisers to reach targeted users, and 3) diverse advertising formats, all help to drive a robust advertising revenue growth.

Overseas Strategy: Success of TikTok

ByteDance has decided to expand to the overseas market, following Douyin’s great success in the domestic market. In 2017, ByteDance rolled out an overseas equivalent of the Douyin video app TikTok and acquired (for ~$900mn), a social video app based in Shanghai with more than 200mn users worldwide, aiming to rebrand the two apps and combine ByteDance’s strong AI and big data analytics capabilities with’s product innovation and grasp of users’ needs and tastes in the West.

TikTok quickly grew its user base to 1bn, faster than any other social media apps, as per Financial Times, thanks to its

localization strategy to cater to western users especially generation-Z through localized UGC (user-generated content) in each different overseas market,

the strong interactive feature that allows comments to be read in the bottom half of the screen while videos played and real-time interactions with content creators and users, as well

superior AI-based content distribution algorithm which enables the most relevant content to be distributed to each user.

Staying Ahead with Mirae Asset’s Latest Insights

Mirae Asset Global Investments adheres to a strictPrivacy Policygoverning the handling of your information and subscribers can opt-out per their preference.

Disclaimer & Information for Investors

No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only.  It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.

The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements.  Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.

Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.

Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.

Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.

Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.

The Company’s Prospectus and the KIIDs can be obtained from . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.

A summary of investor rights is available in English from

The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.

Hong Kong: This document is intended for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.

Copyright 2021. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.


  • Unit 1101, 11/F, Lee Garden Three, 1 Sunning Road, Hong Kong


  • 2295 1500

This website is intended for Hong Kong investors only. Your use of this website means you agree to our Terms of use. This website is strictly for information purposes only and does not constitute a representation that any investment strategy is suitable or appropriate for an investor’s individual circumstances. Further, this website should not be regarded by investors as a substitute for independent professional advice or the exercise of their own judgement. The contents of this website is prepared and maintained by Mirae Asset Global Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.