ByteDance has established an overseas short drama business team and is hiring for various overseas short drama-related positions, such as overseas short drama user product manager, copywriter for Europe and the USA, etc., based in Peking, Shanghai, and other locations. In addition, Byte has launched a short drama App called "Melolo" overseas, which focuses on a free model; this is also Byte's first overseas short drama product.

According to the National Broadcasting and Television Administration, from January 3 to 4, the 2025 National Broadcasting and Television Work Conference was held in Peking. The meeting deployed key tasks for broadcasting, television, and online audio-visual in 2025. These tasks include comprehensively improving governance capabilities in the online audio-visual sector, improving management of program-type audio-visual content, formulating the "Micro Short Drama Management Measures," and working on both prosperous development and standardized management.

The General Office of the National Broadcasting and Television Administration issued a notice on implementing the "Micro Short Drama +" action plan to empower various industries. The notice pointed out that in 2025, the administration will deeply organize the implementation of the "Travel with Micro Short Drama" creation plan, continue to promote the "Learn Law with Micro Short Drama" and "Watch Brands in Micro Short Drama" creation plans, and launch plans like "Learn Classics with Micro Short Drama," "Popular Science with Micro Short Drama," and "Watch Intangible Cultural Heritage in Micro Short Drama," aiming to produce about 300 key micro short dramas with leading and innovative value in segmented fields, creating a batch of high-quality micro short dramas that are thought-provoking, artistically superb, and well-produced.

According to Zhizhong Finance APP, the short drama market is experiencing explosive growth. Based on a report released by the China Research and Advisory Institute, the market size of the micro short drama industry in China is expected to exceed 50 billion yuan in 2024 and is likely to exceed 100 billion yuan by 2027.

The China Online Video Association's "White Paper on the Development of China's Micro Short Drama Industry" indicates that this year the micro short drama market size is expected to surpass the mainland's box office for the first time. Additionally, the Chinese short drama industry has accelerated its expansion overseas, with many popular short dramas entering international markets, with the USA accounting for the highest proportion, over 50%. According to estimates from the top 10 short drama platforms in terms of overseas revenue scale, overseas short drama revenue is expected to reach 4 billion dollars in 2024.

gf sec released a research report stating that the short drama industry is expected to further improve in quality, with an increase in the supply of high-quality content and the wave of short dramas going overseas driving the growth of the industry scale.

Hong Kong stock companies related to the short drama concept:

CHINA LIT (00772): The CEO and President of CHINA LIT, Hou Xiaonan, attended the Asia Television Forum and stated that in the Southeast Asian video-on-demand market, Chinese dramas have become the second largest entertainment content for local users, particularly in the free-value-added sector, where Chinese dramas account for 40% market share, becoming the largest film and television genre. SWHY pointed out that the rapid growth of short dramas going overseas is primarily due to fierce domestic competition, the short cycle and quick turnover of short dramas, and low entry barriers; overseas, there is a habit of content payment and rising fragmented entertainment demand; online literature going overseas has prepared the groundwork for the export of short dramas. So far, CHINA LIT has cultivated about 0.43 million overseas original writers. In 2024, the number of adaptations of CHINA LIT's overseas original web literature is expected to double compared to the previous year.

Inkeverse (03700): The short drama business is progressing steadily, yet profit margins are limited. As a derivative of web novels, the short drama business has seen rapid market development since late April 2022. With the release of several popular short dramas, the number of users has continued to rise. Since 2024, the short drama sector has entered an intensely competitive phase, attracting more and more large companies and platforms to join, with market entry barriers rising and industry profit margins further compressed. The company is exploring the next stage of development for short dramas, attempting deep integration with cultural tourism and other sectors, creating high-quality premium short dramas, and trying out new overseas short drama opportunities, while focusing on validating commercialization pathways.

Ningmeng Film and Television (09857): According to Yunhe Data, from 2016 to 2023, among the top 20 series with effective playback market share, the company has 1-2 works listed each year; dramas with a Douban score of 7+ account for nearly 50%, making it a rare producer of stable top content in China. Focusing on short dramas to create a second growth curve. The re-investment in micro-short dramas, along with thin profits for producers and normalized regulation, indicates that quality is a significant trend; the company leverages its advantages in long dramas and its cooperation with platforms and brand owners to layout boutique short dramas for both B2B and B2C, covering both domestic and overseas markets, which provides more profit security compared to short dramas that rely solely on traffic investment. In 2023, the company launched hits like "Twenty-Nine," achieving a 12.4 times year-on-year increase in short drama revenue; in 2024, the focus will be on micro-short dramas, considering their short production cycle and low cost, we expect high revenue growth for that year, but the effects of the traffic purchase will take time to materialize, and the short drama development may impact profitability, with profits expected to be gradually realized later.

Huanxi Media (01003): Since 2016, the company has introduced several directors, including Peter Chan, Wong Kar-wai, Gu Changwei, Zhang Yimou, and Zhang Yibai as shareholders and partners through private placements of equity. Mimicking the model of DreamWorks in the USA, Huanxi Media has created an innovative equity structure that closely ties the interests of shareholder directors with the company's long-term objectives. In 2018, Huanxi Media received an investment of 0.953 billion HKD from Maoyan Entertainment, acquiring 15% of its shares; Maoyan Entertainment would gain investment rights in Huanxi Media's film and television projects, along with exclusive publicity rights, and provide service access for 'Huanxi Premier' on its website and app, using its traffic resources to promote Huanxi Media's online video streaming platform business. In 2020, the company reached a partnership with ByteDance, establishing an independent channel on platforms like Toutiao and Xigua Video for directing flow to the 'Huanxi Premier' platform. That same year, Huanxi Media received an investment of 0.513 billion HKD from bilibili, acquiring 9.9% of its shares, with bilibili establishing a dedicated section for 'Huanxi Premier' on its platform.

Leading platform companies in the short drama sector: KUAISHOU-W (01024), Bilibili-W (09626).