BUSINESS

Regulators Interrupt ByteDance Micro Drama App’s Run of Success

Published: Dec. 27 6:37 p.m. GMT+8

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ByteDance’s free micro drama app. Photo: VCG

ByteDance Ltd.’s micro drama app said it would temporarily halt the release of new titles after being summoned by China’s broadcast regulator amid greater oversight of the fast-growing segment.

Hongguo Short Drama will hold off publishing new content on its platform for five days starting Thursday and reassess pending micro dramas under stricter content standards, it said in a statement released that same day. The app would also “crack down on dramas containing harmful values, violations of public decency, or vulgar and ‘borderline’ content,” referring to sexually suggestive content.

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ByteDance's Hongguo app is pausing new releases for five days to reassess content after discussions with China's broadcast regulator due to oversight concerns.
The micro drama market in China boomed to 37.4 billion yuan ($5.1 billion) in 2023, growing by 267.7% year-on-year, with Hongguo playing a significant role.
Hongguo's monthly active users saw a 1,045.9% increase to 122 million by September, though the platform faces regulatory scrutiny for content standards.

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Who’s Who

ByteDance Ltd.: ByteDance Ltd. is a major tech company known for its micro drama app, Hongguo, which is part of its Fanqie ecosystem. Hongguo has gained significant popularity in China's growing micro drama market, reaching 122 million monthly active users and employing a "watch and earn" incentive model. Despite its growth, ByteDance faces regulatory challenges from China's National Radio and Television Administration regarding content standards on platforms like Hongguo and Douyin.

iQiyi: The article mentions iQiyi as one of the video platform rivals to Hongguo. It suggests that Hongguo's traffic advantage and revenue-sharing policies give it a significant edge over platforms like iQiyi, Tencent Video, Youku, and Mango TV, despite facing tighter regulatory oversight.

Tencent Video: Tencent Video is mentioned as a rival to Hongguo in the micro drama market. Hongguo, benefiting from strong traffic and revenue-sharing policies, reportedly holds a significant competitive edge over platforms like Tencent Video, iQiyi, Youku, and Mango TV. However, increased regulatory oversight on content standards by Chinese authorities affects all such digital content platforms.

Youku: The article mentions Youku as one of Hongguo's video platform rivals in China's micro drama market. Despite Hongguo's traffic advantage and revenue-sharing policies, Youku is part of the competitive landscape under increased regulatory oversight of digital content by Chinese authorities.

Mango TV: The article mentions Mango TV as one of the video platform rivals to Hongguo. It implies that Hongguo's traffic advantage and revenue-sharing policies give it a competitive edge over platforms like Mango TV, iQiyi, Tencent Video, and Youku. However, there are no specific details provided about Mango TV's operations or market position within the article.

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