Cover Story: China’s Micro-Dramas Steal the Show and Momentum Seems Unstoppable
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By the time Le Li took to the stage at a national media forum in late October, the room was already overflowing. Attendees packed the aisles with smartphones raised and eyes fixed on the editor-in-chief of ByteDance Ltd.’s Red Fruit app — or Hongguo in Chinese — now the country’s largest micro-drama platform. With a calm but confident tone, Le delivered a bold projection: China’s micro-drama industry, barely five years old, is fast approaching the 100-billion-yuan ($14.05 billion) mark.
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- China’s micro-drama industry is booming, projected to reach 100 billion yuan ($14.05 billion) soon, with over 696 million regular viewers and 37,000 titles produced in 2024.
- Platforms like ByteDance’s Red Fruit dominate, while cities such as Zhengzhou and Shenzhen invest heavily, creating thousands of jobs and fostering production hubs.
- Regulatory tightening includes tiered licensing, content oversight, and tax compliance; AI-powered “manju” animated micro-dramas are rapidly emerging, drawing new, younger audiences.
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Who’s Who
- ByteDance Ltd.
- ByteDance Ltd. is a major player in China's micro-drama industry, operating Red Fruit, the country's largest micro-drama platform. Red Fruit has over 236 million monthly active users and its advertising revenue is projected to hit 50 billion yuan in 2025. ByteDance has also launched Red Fruit Free Comics, extending its ad-supported free model to animated content.
- Red Fruit
- Red Fruit, also known as Hongguo in Chinese, is ByteDance Ltd.'s micro-drama app, and China's largest micro-drama platform. In September, it had 236 million monthly active users, surpassing Youku and Bilibili. Its advertising revenue exceeded 30 billion yuan this year, projected to hit 50 billion yuan in 2025. Red Fruit also recently launched a standalone app, Red Fruit Free Comics, extending its ad-supported free model to animated content.
- Tencent Holdings Ltd.
- Tencent Holdings Ltd., a leader in streaming and television through its video arm, initially underestimated micro-dramas, failing to position WeChat as a strong content platform. The company's executive board concluded that micro-dramas are an offshoot of short videos, representing a strategic misstep in recognizing ByteDance's recommendation engine power.
- iQiyi
- iQiyi is mentioned as a leader in paid subscriptions among long-form video platforms. However, it is noted that iQiyi, along with other platforms like Tencent Video and Youku, faced challenges in monetization, with iQiyi's user base plateauing at 130 million. This indicates that while iQiyi was a significant player in the long-form streaming market, it struggled to maintain audience growth and engagement as short-form video gained popularity.
- Youku
- Youku is a long-form video platform in China that redefined home entertainment and gave birth to web dramas and online variety shows. While it was once a leader in streaming and television content, along with iQiyi and Tencent Video, it has been surpassed in monthly active users by ByteDance's Red Fruit app, which had 236 million users as of September, exceeding both Youku and Bilibili.
- Western Movie Group
- Western Movie Group (Xiying Film Group), a state-backed company in Shaanxi province, shifted in late 2022 to producing vertical short dramas. These often leverage local history or landmarks. One such production received a national cultural excellence award and was broadcast on Zhejiang Satellite TV, showcasing the group's integration of micro-dramas with local tourism initiatives.
- Dianzhong Tech Co. Ltd.
- Dianzhong Tech Co. Ltd. operates Hippo Theater, the second-largest micro-drama platform. It boasts over 60 million monthly active users and produces 1,000 micro-dramas annually, with an output value nearing 10 billion yuan.
- Jiuzhou Cultural Media Co. Ltd.
- Jiuzhou Cultural Media Co. Ltd., based in Jiaxing, is a significant player in China's micro-drama industry. The company, alongside Dianzhong Tech, has invested heavily in captive networks to fund numerous small studios and secure copyright deals. For example, Jiuzhou-backed Deep Sea Fish produces up to 80 micro-drama titles monthly, indicating its considerable output and influence in the sector.
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What Happened When
- Early 2010s：
- China experiences a cinema boom, entering the 100-billion-yuan club for the first time.
- 2015：
- Over 379 new web dramas are aired in a single year at the peak of online video platforms.
- 2018–2020：
- Average daily viewing time for short videos in China increases from 42 to 156 minutes.
- By 2019：
- China's box office revenues peak at 64.1 billion yuan.
- By 2022：
- More than a billion Chinese use short-video platforms daily; penetration rate exceeds 97% of internet users.
- 2022：
- NRTA formally classifies micro-dramas as a subcategory of domestic web series, placing them under full-cycle supervision.
- 2023：
- Illegal 'mini program' dramas are wiped out nationwide in a '100-Day Clean-Up,' and legitimate platforms like Red Fruit begin to thrive; Chen Ou enters the micro-drama industry.
- 2024：
- China produces nearly 37,000 micro-drama titles; gradual phase-in of new micro-drama regulatory rules begins.
- By 2024：
- Multimodal AI models accelerate production of 'manju' (comic-animation hybrids) for micro-dramas.
- July 2024：
- Jumei Vertical Screen Film Center in Zhengzhou opens.
- December 2024：
- Red Fruit receives a five-day suspension for failing to properly police problematic content.
- February 2025：
- NRTA releases its most comprehensive directive yet for micro-dramas, establishing new regulatory mechanisms.
- May 2025：
- April Alliance opens a branch in Linfen; local officials rebrand an industrial park as the Linfen Boutique Micro-Drama Base.
- First eight months of 2025：
- Red Fruit removes 1,193 titles after raising review standards three times in response to regulatory actions.
- By July 2025：
- NRTA reports more than 696 million Chinese are regular viewers of micro-dramas.
- September 2025：
- Red Fruit counts 236 million monthly active users; at a conference, Red Fruit announces it will stop guaranteeing payments for ready-made content (except exceptional projects).
- Late September 2025：
- Jumei Vertical Screen Film Center in Zhengzhou is active, hosting many production teams; this period is also referenced in terms of Red Fruit announcing major payment policy changes.
- Sept. 18, 2025：
- A micro-drama shooting site is active in Xi’an.
- As of Oct. 1, 2025：
- Flexible workers in the micro-drama industry are required to pay personal income tax.
- Oct. 28, 2025：
- NRTA director Cao Shumin announces that China is drafting its first official framework for micro-drama production.
- Oct. 29, 2025：
- NRTA deputy director Han Dong criticizes the sector and confirms the forthcoming Micro-Drama Management Act.
- Oct. 29, 2025：
- 22 companies in Beijing sign a voluntary pledge to follow tax laws regarding micro-drama production.
- Late October 2025：
- Le Li addresses a national media forum, projecting China's micro-drama industry to reach 100 billion yuan soon.
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