Core Viewpoint - The recent policy from the National Radio and Television Administration aims to enhance the supply of quality television content, particularly benefiting the drama industry by encouraging creativity and market-driven production [1][6]. Group 1: Impact on the Industry - The new measures are seen as a significant boost for the drama industry, with expectations that long-pending dramas may finally get aired [1][3]. - Companies like Baida Qiancheng, Huace Film & TV, Mango Excellent Media, and others experienced stock price surges due to the news, as they hold a substantial number of backlog dramas [1][3]. - In 2025, 71 backlog dramas are scheduled to be released, a decrease of 36 from the previous year, indicating a trend towards addressing the backlog despite overall declining numbers [3]. Group 2: Financial Implications - There are 111 dramas from 2015 to 2022 that remain unaired, with 36 of them having a combined production cost of approximately 9.071 billion, indicating significant sunk costs in the industry [3][6]. - The total estimated sunk cost for backlog dramas could reach between 16.571 billion to 20.321 billion, highlighting the financial stakes involved [3][6]. Group 3: Challenges and Opportunities - A significant portion of backlog dramas (24%) is delayed due to controversies surrounding key actors, which has led to financial losses for production companies [7][8]. - The industry is exploring various methods to revitalize backlog dramas, including the use of AI technology for actor replacement and selling to secondary platforms [25][31]. - The trend of backlog dramas being sold at low prices (2-5 million per episode) reflects the financial strain on production companies, with many opting for revenue-sharing models to recoup costs [6][29]. Group 4: Market Dynamics - The market has seen a structural transformation, with a previous surge in production leading to an oversupply of content that is now being addressed through policy changes [15][18]. - The shift towards direct collaboration between platforms and production companies is reducing the role of intermediaries, which may impact the profitability of backlog dramas [32].