Velvet threatened by CapCut and Resolve

The real risk is that Velvet may lose the customer before the AI video category even becomes a separate buying decision. CapCut and DaVinci Resolve already sit where creators make raw footage into finished posts, so when they add script generation, avatars, subtitles, auto edits, or text to video, users can get enough AI inside the tool they already open every day, especially when CapCut starts free and mobile first.

• CapCut is dangerous because it is not asking users to adopt a new workflow. It is already the default editing app for a huge casual creator base, with 200M plus monthly active users reported in 2023, and its official product now bundles AI video generation, scriptwriting, voiceovers, scene creation, and editing in one place.
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• DaVinci Resolve attacks from the opposite end of the market. It is entrenched with serious editors, and Blackmagic has added AI features like IntelliScript, animated subtitles, smart multicam switching, and audio assistance directly into Resolve 20, which makes dedicated AI video tools easier to postpone for pros already living in that timeline.
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• This is why aggregation by itself is fragile. In AI video, model access is getting cheaper and more interchangeable, while bigger platforms are wrapping those capabilities inside hosting, publishing, analytics, plugins, or core editing workflows. The product that owns the full job, not just model routing, is more likely to keep the customer.
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The category is moving toward platforms that combine generation with the place where work already starts or ends. For Velvet, that points toward becoming the default surface for a specific workflow, such as product launches or brand video production, with templates, collaboration, publishing, and asset memory that make switching away feel like lost work, not just a lost model bundle.