This archive report was first published on 7 June 2020.
Beijing-based Bytedance, the maker of TikTok, has a new rival in the US market. Zynn, a product of China's number-two video app maker Kuaishou, has become the most popular free app in the US Apple App Store just a month after its launch in May.
With Zynn, Kuaishou is trying to dethrone TikTok, which has become a worldwide sensation. Zynn's interface is a near-clone of TikTok, allowing users to view a continuous feed of short videos featuring other users dancing or performing stunts to upbeat music.
But unlike TikTok, Zynn promises more than just entertainment. The app rewards users in the US and Canada with cash when they invite friends to download the app — up to $20 per invite, depending on how active the friend is on the app.
Users also earn points for simply watching videos, which can then be converted into cash. This model is familiar to users in China, where startups have thrown millions of yuan in gifts and cash at users in order to grab a larger share of the market than competitors offering nearly identical services.
According to Shanghai-based mobile technology expert Matthew Brennan, the success of Zynn will depend on whether the main attraction of the app is the money up for grabs, or whether payment is 'merely a secondary 'side benefit' to using Zynn.'
Most online reviews of Zynn are focused on the cash reward system, with reviewers either complaining about being unable to withdraw their winnings or grateful for the amounts they've made off the app.
As the Chinese short-video industry is expected to generate nearly 100 billion yuan ($14 billion) in advertising revenue by 2021, Kuaishou is taking a gamble in exporting its model to North America, where few apps have managed to build long-term audiences by paying people to use them.
However, Zynn's success will also depend on its ability to attract top content creators, talent, and brands to share videos, said Man-Chung Cheung, an analyst at Insider Intelligence.
