In Depth: TV Industry Hopes for Dramatic Growth After Beijing Loosens Grip

Beijing has announced major regulatory changes to its television industry, rolling back some of the most stringent restrictions in almost twenty years, in a bid to reinvigorate an industry facing declining investment and shrinking audiences[para. 1]. Previously, studios contended with complex, tightening regulations regarding content and show length, while competition from online streaming platforms and the popularity of bite-sized “micro-dramas” contributed to a steady drop in traditional TV drama releases over the past five years[para. 3].

On August 18, the National Radio and Television Administration (NRTA) unveiled a package of reforms: relaxing controls on historical dramas, abolishing limits on episode counts and release schedules, accelerating content approval timelines, and allowing mid-program advertising once more[para. 2]. The reforms also decentralize some content review authority to local stations and encourage innovations like high-definition programming and short-form drama blocks[para. 4]. The market responded positively, with stocks of major TV and film companies spiking on the reforms’ announcement. Early evidence of change includes state broadcaster CCTV airing more episodes per night of period drama “This Thriving Land” than would previously have been allowed, and the quick return of series installments previously blocked by seasonal release restrictions[para. 6].

However, industry skeptics caution that while the government is stepping back, China’s powerful streaming platforms are imposing tougher internal standards. These platforms, facing financial stress and intensified competition from micro-dramas, are cutting their own content production, raising quality demands, and transferring production risks onto external studios[para. 7]. For instance, iQiyi switched from profit to a loss of 133.7 million yuan in the second quarter of 2025, prompting possible delisting from the U.S.[para. 51]. Tencent Video tightened its content strategy, capping long-form dramas and focusing on high-value IPs and star talent, while Youku adopted a Netflix-inspired model emphasizing self-produced, high-quality series and cost efficiency[para. 53].

Among the most significant regulatory shifts is the easing of oversight over profitable, though historically controversial, historical dramas. For over a decade, these shows faced increasing censorship for alleged historical inaccuracies and decadent values, culminating in the banning of palace-intrigue dramas from prime-time in 2011 and a broad NRTA clampdown in 2019[para. 19][para. 21]. With the new relaxation, the number of approved costume dramas for the first half of this year nears the figure for all of 2024, triggering optimism for a resurgence of shelved projects and renewed IP acquisition[para. 23].

Also scrapped is the 40-episode cap introduced in 2020 to fight filler episodes and inflated licensing fees, alongside the rule mandating a year-long gap between seasons. These changes are expected to restore creative flexibility and sustain popular franchises' momentum[para. 27][para. 31]. The NRTA is also piloting the reintroduction of mid-episode advertising to support broadcaster revenues[para. 33].

Genre diversification is another goal. Crime and legal dramas, marginalized for years, now face less stringent review, expediting the greenlighting process for less sensitive stories[para. 35][para. 39]. Imported content, notably restricted since China’s 2016 ban on South Korean programming, may return as long as it steers clear of politically sensitive topics[para. 43].

Finally, the review process for all dramas becomes faster, with the NRTA reducing the decision deadline from 50 to 30 days and exploring more flexible, feedback-driven programming models typical in the U.S. and Taiwan[para. 45][para. 47]. Nonetheless, streaming platforms' focus on top-tier content and shifting risk to producers—via post-broadcast profit settlements and higher upfront script completion demands—threaten smaller studios and new talent, compressing profit margins and opportunity[para. 57][para. 59].

Alongside legacy long-form dramas, the rapid ascent of micro-dramas—short, smartphone-oriented shows delivered in one to two-minute episodes—poses a powerful challenge, drawing away viewers with on-demand, high-intensity storytelling. ByteDance-backed Hongguo exemplifies this trend, leveraging robust IP ecosystems and creator incentives[para. 61][para. 63]. Although streaming giants have launched their own micro-drama initiatives, it remains unclear if long-form content can recapture its former dominance or will be relegated to a niche market as the industry rapidly evolves[para. 65].