Chiratae Ventures

Changing faces of Content Consumption

Saharsh Sharma
May 26, 2025

Will history repeat itself ?

The digital landscape has undergone seismic shifts since Facebook’s inception in 2004, driven by evolving user behaviors, technological advancements, and platform innovations. Over the past two decades, attention spans have plummeted.

Will history repeat itself ?

  • 2009 launch of the Like button sparked and led to multiple measurable engagement metrics that reshaped content creation strategies.
  • Optimizing posts for viral potential rather than depth, favoring emotionally charged headlines and visually striking images, but it came with it own issues:
  • Two examples of this:
    • BuzzFeed and Vice emerged as trailblazers in the 2010s by redefining content for the social media era. Unlike traditional media, which prioritized long-form journalism and paywalled articles, these startups focused on creating shareable, interactive content tailored to platforms like Facebook.
  • This approach generated unprecedented engagement: BuzzFeed’s Tasty brand amassed 100 million followers by 2017 through snackable cooking videos optimized for silent autoplay. However, this audience-centric model contained fatal assumptions:
    • Virality ≠ Monetization: Platforms profited from engagement while publishers bore content costs.
    • Scale Over Sustainability: Venture capital fueled growth at the expense of unit economics, with BuzzFeed raising $400 million before its disastrous SPAC merger.
    • Cultural Impact ≠ Revenue: Despite winning Pulitzers, BuzzFeed News never translated prestige into profitability, closing with $1.6 million in annual losses

Instagram, Snapchat, and the rise of visual content

Democratizing Aesthetic Curation

Instagram’s 2010 debut shifted content creation from text to visual storytelling:
  • Aesthetic-driven platforms lowered entry barriers for creators
  • A smartphone camera replaced professional equipment
  • Algorithmic feeds prioritized creativity over follower counts.
  • Instagram’s $1B acquisition validated the market potential of visual-first networks.

Ephemeral Innovation: Snapchat

Snapchat’s 2011: leveraging FOMO (fear of missing out) to drive daily active usage. This ephemeral model reduced content production pressure, enabling raw, unfiltered sharing—a stark contrast to Instagram’s curated grids.
(2018) Instagram used and moved quickly: “Steal ideas that work, scale them globally”

Attention Span Collapse and the TikTok Paradigm

The 40-Second Threshold

Attention spans have collapsed to 40 seconds— matching the optimal length of TikTok videos. Dopamine-driven loops: each swipe delivers novel stimuli, training brains to prioritize rapid pattern recognition over sustained focus.

This demands front-loaded content that delivers value within 20 seconds—a stark contrast to Facebook’s 2000s-era long-form posts.

Algorithm Driven: TikTok’s AI-curated For You Pages (FYP) that surface hyper-personalized content boost this tremendously → almost addictive given the dopamine loop

Rise & Fall inevitable ?

Will the current platforms fall and new habits of content consumption might emerge → we predict what it might look like in India is happening around the globe.
A combination is about to be the next big thing :

Path forward: Reimagining Content Consumption

Green Shoot validations – Monetization (key piece) : Hybrid: Micro-payment + Subscription + Advertisements
  • Substack’s Niche Success: Over 4 million paying subscribers, a significant increase from the 2 million in 2024 and 1 million in 2021 prove demand for specialized content.
  • The Information: High-price tiers ($399/year) with Slack community access
  • Pocket FM, Astrotalk etc. have demonstrated that micro-transactions are possible in India

Micro-Dramas Applications

Chinese platforms like Kwai and Douyin pioneered 1-3 minute micro-dramas—scripted narratives with cinematic production values tailored for mobile viewing.

Kuaishou, ReelShort, and DramaBox, collectively host over 100,000 micro-drama channels and attract 270 million daily active users with each doing $500 Million in revenue in this category within 3 years of launch.

Macros:
  • Plot-Driven Platforms: ReelShort aggregates bingeable episodic content, monetizing via ads and in-app purchases.
  • AI Scriptwriting: Tools like Squibler auto-generate micro-drama scripts optimized for viral hooks and 40-second act breaks.
  • Vertical Production Studios: Multiple production studios for micro-dramas have come up using iPhone 15 Pro rigs and AI editing suites.</li.

Learnings & Observations :

Customer Behaviour changes in favour of Short-Form Video format :
  • Attention span – Significantly decreased as indicated earlier (~ 40 sec currently)
  • Viewers often search for Part 2 or 3 of a Reel (vertical video content), observed on Instagram and YouTube Shorts
  • Modern audiences are watching films like TikToks on OTT platforms — with one hand of fast-forwarding button skipping through scenes in search of instant gratification
  • Movie recaps as a category on Youtube has been picking up with several channels having 500 million+ monthly views.

ReelShort, DramaBox, Quibi (+ a few others existing from China in US)

  • Definition and Appeal:
    • 1-3 minute episodes, totaling 60-120 minutes per series.
    • Designed to “hook” viewers rapidly (e.g., 6 seconds for identity, 15 for first twist, final 10 for cliffhanger).
  • The Content Challenge:
    • High velocity Content production: Constant demand for new series (every few weeks) leads to a “content treadmill.”
    • Fatigue and Commoditization: Risk of repetitive storylines (revenge, billionaire romance, time travel), leading to audience “boredom crisis.” Content shelf-life is short.
  • Economic Realities:
    • Margins: Even large players often see PAT margins of only 10-12%
    • High Costs:
      • Production: $10,000-$50,000 per series (China); US is more expensive.
      • User Acquisition (CAC): Can be up to 80% of revenue without cracking distribution.
        • Large distribution platforms (e.g., Kuaishou: 270M micro-drama users; Hongguo Short Drama: 122M MAU) to reduce CAC costs and enhance profitability.
      • Time-to-production is days (4-6), not weeks, indicating high output but also high burn.
    • High Failure Rate: A 2024 study found 90% of Chinese short-content producing apps are unprofitable; often only 1-2 out of 10 projects succeed.
    • Target Audience: 70% female, with significant segments aged 25-44 (39%) and 45+ (48%). On Douyin / Kuaishou, nearly 40% are over 45.
India is ripe for a new-player to disrupt the Short Form Video space, if you are building in this space do reach out !
Image Credits: Statista, GrabOn, Techtron, VidIQ, Appfigures, Brainscape