It seems the two video-based social media giants are entering each other’s arena. Tiktok released an app update today allowing users to upload videos up to 10 minutes long, increasing the max length from 3 minutes.
In July 2021, YouTube launched Shorts where its creators can make up to 60-second videos, its answer to the growing popularity of the China-based app. The platform even announced the YouTube Shorts fund to allow its top creators to monetize their shorter content, also similar to TikTok’s creator fund.
Now, in a bid to take back market share–and probably more–from YouTube, Tiktok is entering the longer-form video space. It is unclear, however, if it will separate the business model from the short-form like with YouTube and its Shorts.
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“We’re always thinking about new ways to bring value to our community and enrich the TikTok experience,” said TikTok spokesperson in a statement. “Last year, we introduced longer videos, giving our community more time to create and be entertained on TikTok.”
Prior to the 3-minute max length also launched in July 2021, TikTok started with 15-second videos which increased to 60-seconders.
While YouTube adopted the trend with Shorts, TikTok’s advantage is the dynamic features that users can utilize to create content given the limited real estate in time. Some of these include AR-enabled effects, remixing with other video posts, and a library of user-generated music backgrounds.
Meta Platforms also saw the trend and moved to launch TikTok-like functions in Instagram called Reels. The social media conglomerate expanded Reels to Facebook globally in February 2022.
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The video limit has been TikTok’s valued selling proposition since its inception. Users have found a way to tell longer content in a series of short videos while viewers have grown accustomed to the fast-paced media consumption. This is probably why the increased video max length on the app has so far received mixed to negative reviews.
But more than the flexibility this new TikTok update allows the users, the China-based social media giant might actually be after YouTube’s market and advertising revenue share. While YouTube still holds the highest number of watch-hours, TikTok is fast-rising in that space–considering it has shorter content than YouTube.
TikTok saw a resurgence in its popularity during the COVID-19 pandemic. In the US, it was able to take over YouTube in average watch-hour per user as early as August 2020.
TikTok also was the most downloaded app in 2020 and 2021 globally. In July 2021, it became the first non-Meta Platforms app to reach 3 billion downloads worldwide.
But more importantly, TikTok’s move to increase its time real estate opens up more opportunities for advertisements, like pre-roll and mid-stream ads.
However, YouTube’s current focus might be establishing itself as a streaming platform and content producer through YouTube TV. It has started to tap film and TV production groups to feature original content programming on its platform. The video platform also partnered with TV manufacturers to pre-load YouTube on its television sets.
In January 2022, a study by cyber exposure firm Tenable revealed that scams have been made stealing existing TikTok videos and reposting them on YouTube shorts. The reposted videos, new to the YouTube audience not on TikTok, have been raking in views and subscribers which essentially allows them to earn money from the video platform’s creator revenue model.
Information for this briefing was found via the TechCrunch and Economic Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
