Are you wondering how CapCut makes money, considering it’s a free app? Well, here is CapCut’s business model:
- Subscriptions – Recently, CapCut’s Apple Store page has included several subscription plans
- In-app purchases – You can buy new features on the CapCut app using in-app purchases made available recently on the Apple Store
Keep reading to learn more about CapCut’s business model!
Summary: In this article, I explain how CapCut makes money. CapCut’s business model includes subscriptions and in-app purchases.
Recently, CapCut’s Apple Store page has introduced several subscription plans and in-app purchases for users:
- Monthly subscriptions at $7.99 per month.
- CapCut Cloud Space at $1.99 per month.
It's not surprising that CapCut is becoming a paid app considering its popularity and the fact that many TikTok users rely on it to edit and post videos.
CapCut is transitioning to a paid model because of its success and its loyal audience, who are likely to continue using the app even with added costs.
Subscriptions & In-App Purchases
Recently, the CapCut official download page on the Apple Store has included in-app purchases and subscriptions that users can get:
- Monthly Subscription for $7.99 per month
- CapCut Cloud Space for $1.99 per month
- One-month Pro for $9.99
- CapCut Cloud Space for $0.99 per month
- CapCut Cloud Space for $5.99 per month
- One-year Pro for $74.99
- CapCut Cloud Space for $18.99 per year
- CapCut Cloud Space for $6.99 per year
- CapCut Cloud Space for $54.99 per year
- Monthly Subscription for $7.99 per month
So far, we don’t know what these yearly and monthly subscriptions offer, but we’ll find out when ByteDance, CapCut’s owner company, will clarify.
However, it’s not a surprise that CapCut is becoming a paid app considering its usefulness and that most TikTok users are using it to edit and post videos on the platform.
As far as anyone knows, CapCut doesn’t make money any other way. It has no partnerships or licensed deals with other companies because the app is free now.
Why Is CapCut Becoming a Paid App?
If you’ve used CapCut before, ask yourself: Would you pay for it if it were a paid app? Would it be worth the money based on the quality of its services?
I bet the answer is “yes“. Most people who’ve used CapCut would say the same. That’s because the app is very well done and offers a plethora of features that almost no other app offers for free.
CapCut is becoming a paid app because it’s doing so well and because it has a loyal audience that will continue using the app even if they have to pay for it.
90% of TikTok users edit their videos in CapCut, and while some may move on to other free apps, most will be using the paid CapCut.
CapCut is owned by the same parent company that owns TikTok, so it’s not surprising they’ve decided to monetize the video editing app.
In all likelihood, CapCut will bring in a “lot” of money to ByteDance!
