Core Viewpoint - The company is actively promoting a market strategy that integrates both long and short dramas, focusing on the development of high-quality short dramas to enhance production capacity and market presence [1] Group 1: Company Strategy - The company continues to implement a strategy of linking long and short dramas, as well as developing high-quality short dramas in vertical screen format [1] - The production capacity for short dramas has been rapidly increased, with a monthly output now reaching 20 episodes [1] Group 2: Performance Metrics - Several high-quality short dramas released this year, such as "In the Name of Love," "Next is Happiness," and "Dear Enemy," have each garnered over 200 million views [1]

Core Insights - Interactive Films is solidifying its position in the $8 billion global short drama market with the submission of its work "Hollywood Heartthrob" for the International Short Drama Award, reflecting the increasing industry recognition of the company [1] - The short drama sector has transitioned from an exploratory phase to a mature stage with global commercial value, with the U.S. emerging as a key market [2] Company Overview - Snail, Inc. is a leading independent game developer and publisher, providing interactive digital entertainment content across multiple platforms [4] - Interactive Films, a subsidiary of Snail, Inc., aims to engage new audiences and tell stories through diverse media formats, also being the founding force behind Salty TV [5] Market Dynamics - The global market for vertical short dramas has surpassed $8 billion within just four years of its inception, with the U.S. accounting for approximately 8% of global downloads but contributing 49% of total revenue in the short drama industry [2] - Salty TV has released 67 short dramas, focusing on mobile users with a product-oriented strategy that includes subscription models and viewer engagement mechanisms [2] Strategic Goals - The submission of "Hollywood Heartthrob" to the International Short Drama Award aims to showcase cultural leadership and foster practical collaborations, positioning Salty TV as a leading platform for vertical short dramas in the U.S. [3] - Salty TV seeks to bridge the gap between rich international content supply and the growing domestic demand in the U.S. market [3]

Core Insights - The future of the film and television industry is expected to undergo significant changes due to the rapid development of artificial intelligence (AI) and its integration into content creation and distribution [2][3]. Group 1: Industry Changes - The traditional film industry is facing challenges from vertical content formats, but companies can adapt by producing high-quality horizontal content or by creating vertical content themselves [2]. - AI is seen as both a challenge and an opportunity for the film industry, potentially reducing costs significantly while increasing the volume of creative output [3]. Group 2: AI Integration - AI technology is rapidly evolving, with many issues related to content generation and consistency being resolved in a short time frame [3]. - iQIYI has made substantial investments in AI, aiming to reshape every aspect of content generation, recommendation, and user experience [4]. Group 3: New Initiatives - iQIYI plans to launch the first AI theater in China, "Bodexi·iQIYI AI Theater," which will solicit content ideas globally and provide technical support and subsidies to creators [5].

Group 1 - Tencent's revenue for Q2 2025 increased by 15% year-on-year to 184.5 billion yuan, with net profit rising by 17% to 55.6 billion yuan [2] - Tencent Video's paid membership declined by 3 million to 114 million, showing a decrease both year-on-year and quarter-on-quarter [2] - The advertising revenue for Tencent Video is under significant pressure, with iQIYI's ad revenue dropping by 10.4% to 1.33 billion yuan in Q1 2024, and Mango TV's ad revenue decreasing by 2.7% to 3.438 billion yuan in 2024 [2] Group 2 - The rise of short videos is significantly impacting long video platforms, with short video users in China reaching 1.04 billion and a usage rate of 93.8% as of December 2024 [3] - Short videos are seen as more efficient in monetization, with new consumer brands preferring to invest in platforms like Douyin and Xiaohongshu rather than long video [3] - Tencent Video is adapting by launching over 20,000 vertical short dramas, which have gained significant traction with 3 billion views and 87 trending topics [3]

Core Insights - The overseas short drama market is expected to grow rapidly, with projected in-app purchase revenue reaching $1.079 billion (approximately 77.58 billion RMB) in the first half of 2025, and total revenue for the year anticipated to exceed $4.5 billion [1] - There has been a significant shift in the attitude of traditional American filmmakers towards short dramas, moving from skepticism to embracing the format as a major trend [1][6] - The demand for short drama production in the U.S. has decreased by approximately 10%-20% since 2025, with production orders flowing to countries like Canada, the UK, and Australia [3][4] Group 1: Market Trends - The overseas short drama market is projected to see a cumulative download of 665 million times by mid-2025 [1] - The competition among overseas short drama platforms is intensifying, entering a phase of "survival of the fittest," with some smaller platforms considering closure or transformation [2][23] - The average salary for top actors in the U.S. has doubled, with some earning between $1,500 and $2,000 per day [2][4] Group 2: Content and Production Challenges - There is a notable fatigue in short drama content, necessitating innovation and localization to attract new audiences [24] - The reliance on major platforms like Facebook and Google for advertising is limiting, with a need to explore new channels such as TikTok [24] - The production cost for short dramas in Atlanta ranges from $130,000 to $170,000, which is about 10% cheaper than in Los Angeles [4] Group 3: Industry Dynamics - The number of established production teams in the U.S. is around 20-30, with many new companies struggling to maintain project output and quality [6] - International platforms, including those from Ukraine, South Korea, and Germany, are entering the U.S. market, indicating a growing global interest in short dramas [7] - The collaboration model in the U.S. primarily remains a pure production model, with backend revenue sharing being more common among successful teams [5]

Core Viewpoint - The company is committed to both long-form and short-form content, emphasizing the importance of developing original IPs and maintaining a long-term vision in the industry [1][3][5]. Group 1: Long-form Content Strategy - The company has successfully developed the long-form series "Tang Dynasty Strange Stories," focusing on historical accuracy while allowing for fictional characters [3][5]. - The production process for "Tang Dynasty Strange Stories" involved extensive development and filming time, which has garnered respect from peers in the industry [3][5]. - The company aims to create a sustainable original IP ecosystem, moving away from reliance on web novels and celebrity-driven content [5][9]. Group 2: Short-form Content Strategy - The company is launching the micro-drama "Lion City Mountains and Seas," which is the first micro-drama with an investment exceeding 100 million yuan, showcasing a significant commitment to the short-form market [1][5]. - Other upcoming short-form projects include "Identification," "Soul Ferry: Ten Years," and "Smoke and Rain Mythical Journey," indicating a diverse portfolio of content [7][9][10]. - The rise of vertical short dramas is seen as a new opportunity for the industry, with expectations for the market size to exceed 60 billion yuan this year [15][16]. Group 3: Industry Insights and Challenges - The company acknowledges the challenges faced in the short-form market, including financial losses from earlier projects, but emphasizes the learning experiences gained [18][19]. - The introduction of a "minimum guarantee plus bonus" policy by platforms like iQIYI is viewed as a positive development for the short-form content sector [18]. - The company believes that the boundaries between short-form and long-form content will blur, making both types essential in the future of the industry [19][21].