ByteDance Ecosystem Expands Significantly, with Notable Growth in User Time Spent in Entertainment Sector

Overview

This report is Nomura's April 2026 monthly tracking report on China's internet and new media applications, analyzing changes in monthly active users (MAU), daily active users (DAU), and usage time (MTS/DTSD) of major Chinese internet applications through third-party data from QuestMobile and Sensor Tower. Key findings show ByteDance's continued expansion in entertainment, music, reading, and other sectors, with its user time share surpassing Tencent's for the first time; the travel sector saw engagement decline due to domestic aviation fuel surcharge increases; e-commerce platforms Pinduoduo and Taobao maintained growth momentum.

Core views

ByteDance's comprehensive expansion: ByteDance's time share in Top-50 apps increased from 32.3% in April 2025 to 38.3% in April 2026, surpassing Tencent's 30.8% for the first time. Douyin's time share rose 2.1ppt YoY to 18.2%, while Douyin Lite accounted for 6.2%. Through Douyin's traffic ecosystem and low-monetization ad strategy, ByteDance systematically captured user time in online video, music streaming, and digital reading. Significant divergence in online entertainment: Long video platforms (Tencent Video, iQiyi, Youku, Mango TV) saw MTS decline 10-20% YoY, mainly due to DAU loss. ByteDance's free short drama app Red Fruit saw MTS increase 145% YoY, with DAU up 115%. In short video, Douyin's MTS grew 25%, Bilibili rose 10%, while Kuaishou fell 12%. Changes in music streaming landscape: ByteDance's music apps Soda Music and Tomato Music saw MTS increase 131%/77% YoY, with Soda Music's DAU reaching 57 million, surpassing QQ Music (51 million) and KuGou (50 million) to become China's largest music streaming platform. Tencent Music's three flagship apps saw MTS decline 9-14%, while NetEase Cloud Music fell only 1%, showing resilience. Free models dominate online reading: ByteDance's Tomato Free Novel saw MTS increase 15%, with DAU up 12%. China Literature's paid reading platforms (Qidian Reading, QQ Reading) saw MTS decline 17-21%, with DAU down 9-13%. Travel sector impacted by policy: Ctrip, Qunar, and Fliggy saw MTS decline 6-12% YoY, mainly due to domestic aviation fuel surcharge increases in early April, with further hikes in May expected to prolong engagement declines. The only growing platform, Umetrip, slowed to 14% growth. Divergence in e-commerce and O2O: Pinduoduo's DAU increased 10% (casual users up 35%), Taobao's DAU rose 6%, and JD.com's DAU grew 9%. Meituan/Dianping's MTS fell 3%/1% YoY, but DAU increased 7%/18%, mainly due to shorter single usage times. ByteDance's new group buying app 'Doushengsheng' saw MTS double MoM in April, with DAU up 115% MoM, reaching 16% of Dianping's MTS.

Analysis framework

The report uses app usage data from third-party agencies (QuestMobile, Sensor Tower) to analyze user engagement trends through YoY/QoQ changes. Core analysis dimensions include: 1) User scale (MAU/DAU) and usage time (MTS/DTSD) breakdown to identify growth drivers; 2) Comparison of time shares among internet ecosystems (ByteDance, Tencent, Alibaba, Baidu) to assess competitive landscape; 3) Data comparison of leading apps in segments (video, music, reading, travel, e-commerce) to capture structural changes. The report particularly focuses on ByteDance's cross-sector expansion capabilities through traffic synergy and low-monetization strategies to capture user time.

Methodology notes

• Industry Analysis FrameworkSupply-demand framework

  User Time Share Analysis

  By comparing changes in user time shares among internet ecosystems in Top-50 apps, competitive landscape is assessed. ByteDance's rising share reflects increased attractiveness of its content supply to user time.

• Company Fundamentals & Financial FrameworkVolume-Price Breakdown

  DAU & DTSD Breakdown Analysis

  Total usage time (MTS) is broken down into daily active users (DAU) and daily single usage time (DTSD) to identify growth drivers. For example, Meituan's DAU growth but MTS decline reflects reduced user stickiness.

• Competition & Strategy FrameworkMoat / competitive advantage

  Traffic Ecosystem Synergy

  ByteDance leverages Douyin's traffic ecosystem to empower new apps (e.g., Doushengsheng, Soda Music), rapidly acquiring users and capturing market share, demonstrating its platform synergy advantages.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Bytedance (unlisted)

  Beneficiary: Significant growth in user time across multiple sectors, strengthening ecosystem synergy

  Strengths

  Strong traffic ecosystem, low-monetization strategy for rapid user acquisition

  Comparison

  Time share surpasses Tencent for the first time, rapid expansion in entertainment

  Risks

  Sustainability of viral trends uncertain, intense competition

• Tencent (700 HK)

  Negative impact: Declining user time in music streaming and long video

  Strengths

  WeChat's time share remains highest (19.3%)

  Weaknesses

  Declining engagement in music/video apps

  Comparison

  Time share surpassed by ByteDance

  Risks

  Weakening user stickiness in core apps

• Trip.com (TCOM US)

  Negative impact: Declining engagement in travel sector

  Weaknesses

  Ctrip/Qunar DAU down 3%/7%

  Comparison

  Only direct booking platform Umetrip's growth slowed

  Risks

  Continued impact from fuel surcharge increases on demand

• Meituan (3690 HK)

  Neutral: DAU growth but shorter single usage times

  Strengths

  DAU up 7%/18% YoY (Meituan/Dianping)

  Weaknesses

  MTS down 3%/1% YoY

  Comparison

  Facing new competition from ByteDance's Doushengsheng

  Risks

  Declining user stickiness, threat from new entrants

Key data

• China Smartphone MAUs (MAS)1.28 billionApril 2026, up 1.5% YoY
• ByteDance App Time Share38.3%April 2026, up 6ppt YoY, surpassing Tencent's (30.8%) for the first time
• Red Fruit Short Drama App MTSYoY +145%April 2026, DAU up 115% YoY
• Soda Music DAU57 millionApril 2026, up 76% YoY, becoming China's largest music streaming platform
• Ctrip/Qunar DAUYoY -3%/-7%April 2026, impacted by aviation fuel surcharge increases
• Pinduoduo DAUYoY +10%April 2026, casual users up 35%

Impact & implications

The report suggests ByteDance's apps, through traffic synergy and low-monetization strategies, are systematically capturing user time, posing pressure on competitors like Tencent Music, China Literature, and long video platforms. The travel sector faces short-term pressure from policy impacts, but holiday effects may bring sequential improvements. E-commerce platforms Pinduoduo and Taobao maintain DAU growth through casual user expansion, reflecting lower-tier market potential. ByteDance's new group buying app 'Doushengsheng' is rapidly scaling, potentially challenging Meituan's local services business.

Risks

• Sustainability of viral trends (e.g., Kling Korean baseball effect) uncertain
• Further domestic aviation fuel surcharge increases suppressing travel demand
• Intense competition in AI-generated video apps, unclear winners
• Third-party LLM API platforms diluting mobile app revenue sharing

What to watch

• Impact of ByteDance's Doushengsheng on Meituan's local services business
• Whether travel sector engagement continues to decline in May
• Revenue structure changes in AI video apps (Kling/Jimeng)
• Long-term impact of free short drama/music apps on paid models