Core Insights - The article discusses the challenges and strategies of Xiaohongshu (Little Red Book) in its short drama business, highlighting its late entry into the video content market and the difficulties it faces in user engagement and monetization [3][5][11]. Group 1: Short Drama Business Development - Xiaohongshu launched its short drama business in June 2022, with a significant advertising support plan, and officially launched its short drama channel in January 2023, releasing 100 short dramas, including 10 exclusive productions [3][5]. - The platform's first major hit, "Zhiren Zhi Ai," achieved over 200 million views within two weeks of its release, indicating potential for success despite a late start [3][5]. - The platform's user demographic, with over 70% female users and a high concentration of young users, aligns well with the target audience for short dramas, particularly romance genres [7][9]. Group 2: Content Strategy and Aesthetic Focus - Xiaohongshu aims to create high-quality, aesthetically pleasing short dramas, emphasizing visual appeal and production quality, as seen in the use of 4K resolution and cinematic techniques [9][11]. - The platform has partnered with FIRST Youth Film Festival to support original script submissions, offering financial incentives, although there are concerns about the adequacy of these rewards [9][10]. - The community aspect of Xiaohongshu is seen as integral to its content strategy, with user-generated discussions potentially enhancing content visibility and engagement [10][11]. Group 3: Monetization Challenges - Most short dramas on Xiaohongshu are currently free to watch, which poses challenges for monetization, especially as production costs for some dramas exceed 3 million [11][12]. - The lack of a robust advertising and e-commerce integration limits Xiaohongshu's ability to capitalize on its user base, resulting in lost revenue opportunities compared to competitors like Hongguo [11][12]. - The platform's revenue-sharing model with content creators is under scrutiny, as creators may seek better financial returns elsewhere, particularly if competing platforms offer more attractive terms [12][13]. Group 4: Competitive Landscape - The competition for user attention and engagement in the short drama space is intense, with platforms like Hongguo achieving significant revenue through effective monetization strategies [12][14]. - Xiaohongshu's unique selling proposition lies in its focus on high-quality content, but it must convert this aesthetic advantage into commercial success to retain users and creators [14].