Key facts
- ByteDance's Hongguo app is a leading platform for short dramas in China.
- Short dramas are gaining traction as users shift away from long-form content.
- AI video tools are increasingly used in the production of short dramas.
- Global short-drama revenue is projected to reach $14 billion by the end of 2024.
ByteDance's short-drama app, Hongguo, is experiencing significant growth in China, capturing user attention and challenging traditional long-form streaming services. In August, ByteDance's apps commanded 41.8% of user time on the country's top 50 mobile applications, a notable increase from the previous year. Hongguo itself has become a major player, ranking fourth among the largest apps, behind ByteDance's Douyin and WeChat. This surge in short-form content consumption contrasts with a decline in user engagement for platforms like iQIYI, Tencent Video, and Mango TV. Launched in 2023, Hongguo operates on a free, ad-supported model and had amassed nearly 370 million users by June, riding a wave of popularity for mobile-first, episodic dramas.
The trend is not confined to China, with the US market expected to contribute significantly to the projected $3 billion in international short-drama revenue this year. Global revenue for short dramas is anticipated to reach $14 billion by the end of 2024. Furthermore, AI video tools are playing an increasingly crucial role in the production of these short dramas, enabling brands to create content more cost-effectively. TikTok CEO Shou Zi Chew indicated that AI models, including ByteDance's Seedance, are widely used in the industry.