NetEase spreads short video ambitions across entire ecosystem to take on incumbents, but insiders say chances of success are slim
- NetEase creates a new fund to support content creators across its various apps to compete with established rivals and newcomers
- Douyin and Kuaishou own more than half of China’s lucrative short video market, while WeChat is trying to catch up
Now NetEase, one of China’s very first internet media companies and not one to be left out, is also setting its sights on short videos.
The company is not rushing out a stand-alone short video app, according to a company representative. Instead, it is investing 1 billion yuan (US$155 million) to support video creators across five existing NetEase apps related to news, social media, e-commerce, music and education.
While some analysts and influencers applaud NetEase’s decision to avoid the copycat route, they believe that the newcomer has a slim chance of making a noticeable impact on a market where rivals Douyin and Kuaishou account for an almost 60 per cent share of total active users, according to figures from market intelligence firm Qianzhan Industry Research Institute.
Content producers said their experience attested to the outsize influence of Douyin.