Core Insights - ByteDance's Tomato series business is projected to generate over 30 billion to 50 billion yuan in profit and exceed 300 billion yuan in revenue for 2024, with Tomato Novel being the primary revenue contributor [1] - The overall revenue for the Tomato series is expected to surpass 600 billion yuan this year, with Tomato Novel contributing over 450 billion yuan and Hongguo Short Drama over 150 billion yuan [1] Revenue and Profitability - The revenue and profit figures for ByteDance's Tomato series are significantly higher than Tencent's Reading Group, which reported total revenue of 8.12 billion yuan and profit of 1.14 billion yuan for 2024 [3] - Tomato series profits are currently low due to ongoing support for the Hongguo Short Drama business, which has invested heavily in user acquisition [3] User Engagement and Growth - Hongguo Short Drama achieved nearly 100 million daily active users (DAU) and over 200 million monthly active users (MAU) within a year, with MAU reaching 236 million in September, a 94% year-on-year increase [3] - Tomato Novel's DAU exceeded 100 million, surpassing internal expectations of 60 million [3][4] Business Strategy - ByteDance's business decisions are based on market size and profitability potential, with Tomato Novel and Hongguo Short Drama meeting these criteria [3] - The company employs aggressive user acquisition strategies, including hiring, acquisitions, and significant marketing expenditures, with Hongguo Short Drama initially receiving a budget of 10 million yuan per day [5][6] Content and Monetization - The Tomato Novel platform has over 600,000 signed authors, with 85% of content being original, and has successfully promoted popular works [6] - The platform includes various content formats such as audiobooks, short dramas, and comics, enhancing user engagement and monetization opportunities [7] Future Growth and Innovations - Hongguo Short Drama is implementing revenue-sharing policies for actors, with some earning over 1 million yuan, and is exploring new features to accelerate commercialization [7] - The introduction of AI-driven comic dramas is expected to create new growth opportunities, with the market projected to exceed 20 billion yuan by 2025 [7]

Core Viewpoint - ByteDance's Tomato series business is projected to generate over 30 billion to 50 billion yuan in profit in 2024, with total revenue expected to exceed 600 billion yuan, primarily driven by Tomato Novel's contribution [4][5]. Revenue and Profitability - The Tomato series, which includes Tomato Novel, Hongguo Short Drama, Tomato Listening, and Wukong Search, is expected to generate over 300 billion yuan in revenue in 2024, with Tomato Novel alone contributing over 450 billion yuan [4][5]. - In comparison, Tencent's Reading Group is projected to have a total revenue of 8.12 billion yuan and a profit of 1.14 billion yuan in 2024 [7]. User Growth and Engagement - Hongguo Short Drama has achieved a monthly active user (MAU) count of 236 million as of September, representing a 94% year-on-year growth, significantly outpacing competitors [9]. - The success of Tomato Novel and Hongguo Short Drama is attributed to their alignment with ByteDance's strategy of targeting large, profitable markets with substantial user bases [9][10]. Business Strategy - ByteDance's approach involves acquiring resources through hiring, acquisitions, and traffic support, followed by a free model and heavy investment in user acquisition [11]. - Hongguo Short Drama reportedly had an initial budget of 10 million yuan per day for user acquisition, indicating a high level of investment compared to other internal projects [11]. Content and Monetization - The Tomato Novel platform has signed over 600,000 authors, with 85% of content being original, and is actively promoting successful works for IP development [13]. - Hongguo Short Drama is implementing revenue-sharing policies for actors, with reports of some actors earning over 1 million yuan [14]. Future Growth Opportunities - The introduction of a free comic drama app and the anticipated growth of the comic drama market, projected to exceed 20 billion yuan by 2025, indicates further expansion potential for the Tomato series [15][16].