Market Overview - The micro-short drama market in China is projected to reach a scale of 50.5 billion yuan in 2024, surpassing the box office for the first time, with expectations to grow to 63.43 billion yuan in 2025 and 85.65 billion yuan by 2027, reflecting a compound annual growth rate of 19.2% [3] - The National Radio and Television Administration launched the "Micro-Short Drama +" action plan to guide the industry towards high-quality development and to leverage micro-short dramas as tools for various sectors [3] - The diversity of micro-short drama content has increased significantly in the first half of the year, with notable growth in categories such as legal dramas, cultural tourism dramas, and brand-customized dramas [3] Investment Flow Scale - The investment flow scale for micro-short dramas is expected to reach approximately 42.3 billion yuan in 2025, representing a 28% increase from 2024 [6] - The growth is attributed to a surge in native end models and a significant increase in free model investments, which have outpaced paid investments [6] Free Model Scale - The free micro-short drama market is estimated to be around 35 billion yuan in 2025, a 40% increase from 2024, with free content expected to account for about 55% of the total market [9] - The growth is driven by a shift towards free distribution due to a decline in paid content, with major platforms like Hongguo and Heima leading the charge [9] User Scale - By mid-2025, the number of micro-short drama users in China is projected to reach 696 million, accounting for nearly 70% of the total internet users [12] - This represents an increase of approximately 34 million users in the first half of 2025, with a growth rate of 5.1% [12] Investment Flow Analysis - The total investment flow value for micro-short dramas in the first half of 2025 is estimated at around 13.2 billion yuan, with monthly values fluctuating between 2 to 2.4 billion yuan [15] - Over 66,300 micro-short dramas participated in investment flows in the first half of 2025, with new dramas accounting for about 60% of the total [18] - New dramas contributed over 10 billion yuan to the total investment flow value, maintaining a high proportion of around 76% [20] Platform Analysis - The top 10 platforms dominate the micro-short drama market, accounting for 85% of the total investment flow value, with the top 4 platforms alone contributing approximately 61% [23] - The cumulative investment flow value of 83 micro-short drama platforms exceeded 11 billion yuan in the first half of 2025, with Beijing, Zhejiang, and Chongqing contributing over 70% of the total [24] Native End Analysis - The number of micro-short dramas on Douyin surpassed 94,900 by June 2025, with new dramas making up about 18% of the total [28] - The most popular genres on Douyin include revenge, family ethics, and contemporary romance, with revenge dramas showing particularly strong performance [31] Free End Analysis - The male user base for free micro-short dramas has increased, with males now accounting for 52% of users, indicating a more balanced gender distribution [34] - The proportion of young users under 40 has risen to over 50%, reflecting a trend towards a younger audience [36] - The Hongguo platform's monthly heat for micro-short dramas exceeded 10.279 billion in June, with new dramas driving over 60% of the total heat [39]

Core Insights - The article discusses the shift in the micro-short drama industry, highlighting how platforms are transitioning from user acquisition to attracting production brands [1][3] - Hongguo's new policy aims to draw micro-short drama brands to its platform, enhancing marketing opportunities for these brands [1][5] Group 1: Micro-Short Drama Brand Concept - The concept of production brands in the micro-short drama industry is becoming increasingly recognized by users, with several brands like Maiya, Jiuzhou, and Huace Film & TV launching their own micro-short drama brands [4] - Successful micro-short dramas from various brands have been noted, indicating a competitive landscape where platforms are actively inviting brands to join [4] Group 2: Hongguo's Brand Operation Plan - Hongguo's user base is significant, with 173 million monthly active users as of March 2025, reflecting a 220.3% year-on-year growth [5][7] - The user demographic is diverse, with a balanced age distribution, allowing for a broad audience reach for micro-short dramas [7] - The platform offers multiple exposure opportunities for brands, including priority display in search results and direct links to micro-short drama entries [8][11] - Brands can utilize promotional strategies for both new and existing dramas, enhancing resource utilization and audience engagement [13][16] Group 3: Brand Entry Outcomes - Over 100 leading brands have already joined Hongguo, with individual brand viewership exceeding 10 million [18][19] - Notable statistics include "Jiuzhou Short Drama" accumulating 137,000 followers and 230 million likes, showcasing the potential for audience engagement [19] Group 4: Differences from Traditional Film and Television - The micro-short drama industry is moving towards a brand-centric model, where production brands serve as content aggregation labels, contrasting with traditional media's focus on individual creators [21][22] - The shorter production cycles and lower costs of micro-short dramas allow for more experimentation and a higher output, facilitating the establishment of production brands [23] - The industry is evolving towards a more standardized and professional approach, with platforms like Hongguo integrating brand resources to provide quality content to viewers [24]

Industry Growth - The micro-short drama industry is experiencing rapid growth, with over 40,000 episodes expected to be aired in 2024, leading to an estimated industry scale exceeding 60 billion yuan by 2025. This growth is driven by policy support, financial incentives, a robust industry chain, and diverse business models [1][2][10]. Market Competition - The market competition is intensifying as various entities, including long and short video platforms, television media, and e-commerce platforms, enter the micro-short drama space, creating a three-tier competitive landscape led by short video media [1][2][15]. Business Model Evolution - The industry is transitioning from In-App Purchase (IAP) to a mixed model known as In-App Advertisement and Purchase (IAAP), with over a hundred leading players exploring this model, resulting in significant revenue growth. The IAAP model extends the lifecycle of works and enhances revenue, exemplified by the series "绝世红颜" [1][2][17][20]. Cross-Screen and Overseas Development - In 2024, four major satellite TV stations are expected to air 32 micro-short dramas, indicating a trend towards cross-screen broadcasting and promoting the integration of large and small screen media. The overseas micro-short drama market and app user base are also growing rapidly, showcasing a tiered market structure [2][4]. User Consumption Expansion - The user base for micro-short dramas in China is projected to exceed 600 million in 2024, with a growth rate of 15% and a 13% increase in playback volume. Users are drawn to micro-short dramas for their brevity and engaging content, with popular genres including romance, revenge, and comedy [2][6]. Brand Marketing Growth - Over 200 brands are expected to invest in micro-short dramas for the first time in 2024, with the number of brand dramas increasing by 140% year-on-year. Fast-moving consumer goods brands lead the investment, with a shift from product placement to customized and self-produced content, achieving full-chain empowerment and effectiveness [2][6][8]. Future Trends Outlook - Nearly 70% of industry practitioners are optimistic about the future of micro-short dramas, with 60% of advertisers planning to continue investing in 2025. There is a clear trend towards brand self-operation, moving from customization to self-production and from public to private domains [2][6].