Core Viewpoint - The paid mini-program short drama model is experiencing a rapid decline, with major platforms like Kuaishou shutting down related services, indicating a shift in the industry towards different business models [2][5]. Summary by Sections Paid Mini-Program Short Dramas - Kuaishou will shut down its short drama mini-program on June 17, 2024, confirming the information from industry insiders [2]. - The paid mini-program short drama, known as IAP (In-App Purchase), was a mainstream model in the early stages of short drama development, allowing users to watch dramas without downloading apps [2]. - This model involved significant investment in advertising to attract viewers, but it also led to regulatory issues due to the potential for unregulated content [2]. Shift in Business Models - Since 2024, the short drama market has seen a significant shift from the IAP model to the IAA (In-App Advertising) model, which allows users to watch dramas for free while generating revenue through advertisements [3]. - According to a report by the China Internet Audio-Visual Association, the market share of the IAA model rose from 11% in January 2024 to 50% by October 2024, surpassing the IAP model [3]. - ByteDance's Hongguo short drama, launched in April 2023, has become a major player in the IAA model, achieving 173 million monthly active users by March 2024, a 220.28% year-on-year increase [3]. Kuaishou's Strategic Shift - Kuaishou, initially successful with the IAP model, is now adjusting its strategy by moving away from mini-programs to focus on native accounts on platforms like Douyin and Kuaishou [4]. - Native accounts allow users to watch short dramas directly without redirection, facilitating better fan engagement and private domain operations [4]. Regulatory Environment - The short drama industry is entering a "strict regulation" era, with new policies from the National Radio and Television Administration aimed at promoting healthy development [6]. - Recent actions by Kuaishou include removing over 100 illegal short dramas and reporting serious violations to a blacklist, indicating a commitment to stricter content oversight [6].