Core Insights - The current short drama industry is facing significant challenges, with 90% of short dramas operating at a loss due to a content-only approach. A shift towards a more sustainable model is anticipated post-Spring Festival, with a focus on cost reduction and account management [1][2]. Group 1: Industry Trends - The short drama sector is expected to undergo a major restructuring in 2026, with a need to drastically lower production costs and adopt mobile filming techniques [1]. - Companies will need to transition to an operational model similar to Multi-Channel Networks (MCNs) in the short video industry, where all personnel and resources are internally managed [1]. Group 2: Account Management - The recommendation mechanism for short dramas on platforms like Hongguo mirrors that of Douyin, where actors with more followers receive higher pay and greater exposure for their works [2]. - The importance of account management is emphasized, with a direct correlation between the number of followers and the compensation for actors. For instance, an actor with 100,000 followers can command a daily rate of 10,000 yuan [13]. Group 3: Business Model - The business model for platforms like Hongguo is primarily ad-driven, similar to Douyin, where user engagement and retention directly influence advertising revenue [25]. - The platform aims to create a comprehensive ecosystem around short dramas, positioning itself as a story-driven version of Douyin rather than a direct competitor to traditional streaming services [1].