In 2017, capital market of short video sector kept heating up in China. Only in the first three quarters of 2017, 48 investments are recorded, surpassed the 41 investments in 2016. 79.55% of enterprises raised Angel and Series A funding, and only 12.5% obtained Series B financing. iResearch believes that short video sector is in a fast-growing stage, and its commercial value of low cost and high return is tempting startups and investors. As a result, a great many of short video platforms and short video content makers are emerging, and based on this, even though a flood of capital came into the market, due to dispersed funding, most enterprises were still in an early stage of exploration. On the one hand, short video sector is still full of opportunities and imagination. On the other hand, exploring a mature operating mechanism shall be the next important proposition.
Short video sector emerged in 2016. In early stage, short video platforms attempted to monetize business. and in 2017, short video sector boomed with rising of audiences and attention from advisers. Therefore, the revenue of the sector skyrocketed 183.9% from a year earlier to 5.73 billion Yuan in 2017.
iResearch believes that in the next two years, short video platforms are expected to create many commercial opportunities, and traffic monetization will promote high growth of the revenue. Meanwhile, as the continuous improvement in the quality of content marketing, there will be a great potential for content monetization of short video. It is estimated that the revenue of short video sector will surpass 30 billion Yuan by 2020.