Case study on TikTok's younger sibling Capcut

"If a picture is worth a thousand words, a video is worth a million!" 

Videos are the most straightforward way to convey a message. Be it for wishing someone their birthday or showcasing our hidden talents on the internet; the video does speak more than a picture ever could—no wonder we love scrolling through Instagram and TikTok videos. 

Everyone admires those perfectly-synced videos, packed with eye-catching transitions, groovy music and sassy dance moves. These short clips imbibe us with emotions, influencing our minds and body. 

But editing videos is not as easy as it seems. Video editing is an art, a skill that needs loads of practice. But with CapCut, the battle is half won!

Introduction to CapCut, the alternative to Tik tok app:

Whether you're a social media influencer, an aspiring filmmaker, or someone who loves creating videos, CapCut is the perfect tool to bring your vision to life. CapCut is the ultimate video editing wizard that turns your raw footage into a polished masterpiece with just a few taps. It's like having a virtual editing studio at your fingertips, complete with all the latest tools and effects. 

A sibling of the world- the famous app TikTok, CapCut is a short video editing application that allows a smooth video-editing experience for beginners and professionals alike. 

With CapCut, you can add music, filters, stickers, and text overlays to your videos, making them stand out and grab attention. 

The app is developed to ease the burden of heavy software on novice video editors.

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Big names of CapCut:

• Owns CapCutChinese conglomerate- ByteDance Ltd owns CapCutChinese conglomerate- ByteDance Ltd owns CapCut. 
• Liang Rubo is the acting CEO. 
• Born to the same parent, TikTok is its much-known sibling.

Company profile:

History:

CapCut was initially designed and developed by Shenzhen Lianmeng Technology in 2017. At that time, the app was called "Jianying". In 2018, the tech startup was bought by ByteDance for USD 300 Million.

Later the app was launched for Chinese users in 2019. A year later, in April 2020, the app made its international debut. 

Post eight months and the company was rebranded as "CapCut" in December 2020. 

The target market:

CapCut is most popular among youngsters aged 14 to 25. Hence, the company pampers young adults the most. Be it keeping the interface fun and intriguing or eliminating the concept of paid advertisements altogether, ByteDance has mastered the art of customer pampering.

Source of revenue:

The prime source of revenue for the application is "premium subscription". The company's plan to mint money from the premium subscriptions was incorporated in September 2022. Before that, the app was free to use. 

A premium subscription costs $7.99 per month or $74.99 per year.

The company also generates revenue through "cloud storing user data". The cloud storage costs $0.99, $5.99, and $18.99 monthly for three different storage size options.

Fraternity:

1. Adobe Premiere Rush: Adobe Premiere Rush is a professional-grade video editing app that allows users to edit and export high-quality videos on mobile devices and desktop computers.
2. Carva: Carva is a simpler, lighter version of Photoshop and Abode Premiere. 
3. InShot: InShot is a popular video editing app that offers essential editing tools such as trimming, filters, and text overlays, as well as advanced features like speed control and voiceovers.

But despite being relatively new in the market, the app stands as a black horse among competitors like Canva and Lightroom. The app offers an easy yet interactive interface for video editors, which explains the reason for amassing 200 million monthly users this year. 

Rise in fame: Amassing Global Popularity:

CapCut rose to fame quickly after its release in 2019, mainly due to its popularity in China. 

But as soon as the app's international version was released in the market, the app gained massive popularity, especially among younger generations and social media influencers.

According to Sensor Tower, a market research firm, CapCut was the world's third most-downloaded video editing app in 2020, with over 205 million downloads. In 2021, CapCut grew in popularity and reached over 500 million downloads globally, marking a year-on-year growth rate of 272 per cent. The app also consistently ranks among the top 10 video editing apps on the App Store and Google Play Store.

Despite Chinese apps facing bans in large markets like India, Bytedance's CapCut has bagged global admiration. In Jan 2023, over half of the monthly revenue generated was from The United States, amassing over 200 million monthly active users. 

The company will be among Britain's top three best video-editing applications in September 2022. 

The graph shows that CapCut was downloaded 84352 times monthly, surpassing other video-editing applications like "VivaVideo" and "Filto."

Concerns around the use of CapCut:

Despite rising to fame, the app is the sibling of the notorious TikTok, under the global radar for unauthorized user data collection, storage and distribution. 

In 2018, the Government of India investigated TikTok. In the investigation, TikTok was found guilty of extracting and storing plentiful unauthorized user data. Following the research, other nations began probing, too; the United States was one of the many interrogating the matter. 

By 2020, in a territorial dispute with China, TikTok, and several hundred other Chinese apps, were banned in India. TikTok is also banned in India's neighbours- Pakistan and Afghanistan, over allegations of "hateful content circulation". In the same light, TikTok is also banned in UAE. 

But that is not it. When security concerns with TikTok magnified, Trump Administration even asked ByteDance to sell TikTok to American companies like Meta or bear the consequences of a nationwide ban. 

Although the ban did not happen, it alarmed domestic and international users about the magnitude of the threat imposed by TikTok, firing a string of probes against TikTok and other Chinese apps.

As a result, Chinese apps are under constant scrutiny, and Companies like "Pinduoduo"- a Chinese e-commerce company- are banned frequently.

So, is CapCut the same? 

CapCut collects a lot more data than it needs to!

CapCut is a video editing application that collects much more personal information than it needs to operate, an article on MakeUseOf stated. 

As per Apple's App Store, CapCut collects the IP address, connection, and device manufacturer information, among other credentials. Wionews- an Indian media company- claimed that CapCut collects user information in Singapore and the US.  

So can CapCut be Trusted?

Following the footprints of TikTok, CapCut is running down the same spiral trail. Although due to a lack of research on the security threats of CapCut, there is no substantial evidence for suspicion other than the unnecessary data collection. 

Additionally, our research shows that CapCut is employed as an AI learning media. In the United States, elementary teachers have begun employing CapCut for teaching students.

Conclusion:

On a positive note, with a smooth and interactive interface, CapCut is perfect for novices and experts alike. Unfortunately, CapCut is climbing the "top apps' ranking" fast by killing major players from its' contenders' list by killing major players from its' contenders' list by killing major players from its' contenders list.

That being said, CapCut shares the same DNA as TikTok, stashing unnecessary user data and breaching user privacy.

So, users should take extra precautions before signing up on CapCat!