Core Viewpoint - Hongguo Short Drama has been actively expanding its features, including testing a "community" function and short video capabilities, to enhance user engagement and create a self-sustaining traffic pool [1][3][9]. Group 1: Community Function - The "community" feature allows users to post video and graphic content, focusing on discussions related to short drama plots and actors, with a "watch drama" button for easy access to related content [1][4]. - The community function is positioned prominently in the app, indicating its strategic importance in user interaction and retention [1][3]. - The introduction of this feature aims to increase user activity and retention by providing a space for discussions, which is essential as user growth has shown signs of slowing down [9][11]. Group 2: Short Video Function - The short video feature mimics popular platforms like Douyin, utilizing a vertical scrolling format to enhance user experience [3][4]. - This feature is designed to showcase highlights from short dramas, primarily posted by copyright holders and actors, further integrating content within the app [4][7]. - The addition of short videos and community features reflects Hongguo Short Drama's strategy to build a comprehensive ecosystem around short dramas [3][4]. Group 3: User Engagement and Monetization - Hongguo Short Drama has implemented user incentive programs, such as rewarding users with coins for posting quality content, to stimulate participation in the new community [11][13]. - The company faces challenges in maintaining user engagement and balancing community dynamics with monetization efforts, as seen in other platforms like Xiaohongshu [11][13]. - The potential for commercializing the community could provide new revenue streams, similar to how Douyin has leveraged content for promotional purposes [11][13].

Core Viewpoint - The short drama industry is experiencing rapid growth, significantly altering the video content ecosystem and attracting major players like iQIYI, Tencent, and Youku to enter the market [3][4]. Industry Overview - The short drama market in China is projected to reach a scale of 504 billion yuan in 2024, with expectations to exceed 1 trillion yuan by 2027 [8]. - The monthly active users of the Red Fruit platform reached 166 million in January 2023, indicating a strong user base for short dramas [8]. Financial Insights - Successful short drama screenwriters can earn up to 1 million yuan from revenue sharing, with some reports suggesting that top writers can make between 1 to 2 million yuan [6][11]. - The production costs for short dramas have increased, with average costs now ranging from 60,000 to 80,000 yuan, and high-quality productions costing between 800,000 to 3 million yuan [22][24]. Market Dynamics - The industry is entering a phase of intense competition and differentiation, with many weaker players likely to exit the market [12][21]. - Major platforms are adjusting their strategies to compete in the short drama space, with iQIYI announcing plans to reduce the number of long dramas and implement a "jump watch" feature [8][12]. Production Trends - The production cycle for short dramas is significantly shorter than that of long dramas, often taking only a few months, which allows for quicker returns on investment [12][22]. - The trend of "star-making" in short dramas is emerging, with some actors commanding daily fees that exceed those of long drama actors [24][25]. Creative Strategies - Successful short drama scripts often draw inspiration from popular trends and themes, with a focus on emotional engagement and audience retention [17][19]. - The industry is seeing a shift towards adapting existing intellectual properties, which can lead to competition among similar projects [17][18]. Future Outlook - As the industry matures, the rapid growth in revenue and salaries may stabilize, leading to a more rational market environment [25].