Video editing app Captions switches to a freemium model to boost growth | TechCrunch
Jan 09, 2025 - techcrunch.com
Video editing app Captions is transitioning to a freemium model to capitalize on uncertainties surrounding TikTok and CapCut's future in the U.S. Previously a paid-only app, Captions aims to compete with CapCut, InShot, and InVideo by offering a free tier with basic video editing tools, including subtitle addition, a teleprompter, and voiceovers. The app's AI features, such as AI avatars and editing, will remain in the paid tier. CEO Gaurav Misra highlighted that if CapCut is banned, many users will lose access to its tools, and Captions seeks to fill that gap by attracting users who prefer traditional editing without AI features.
CapCut has seen significant success, with over 1.3 billion downloads and $460 million in in-app purchases. Misra noted that basic editing features in Captions run locally on devices, eliminating server costs and allowing the company to offer them for free. Captions plans to introduce more AI-powered features to lower-cost tiers as AI model costs decrease. The app's AI creator feature is already available in the $10 per month Pro plan.
Key takeaways:
Video editing app Captions is transitioning to a freemium model to compete with apps like CapCut, InShot, and InVideo.
The free tier of Captions will offer basic video editing tools, while AI features will be part of the paid tier.
Captions aims to fill the gap if CapCut gets banned in the U.S., positioning itself as an alternative for users.
The company plans to introduce more AI-powered features to cheaper tiers as the cost of running AI models decreases.
