China Entertainment Micro-drama Industry
Definition & Scale
China’s micro-drama is a rapidly growing genre of short-form video, with episodes typically lasting 30 seconds to 5 minutes and designed for mobile viewing. The content is serialized, often spanning 60 to 100 episodes.
The China Netcasting Service Association forecasts China’s micro-drama market will reach 50.44 billion RMB by 2024, a 34.9% increase, surpassing the 47 billion RMB box office revenue of mainland films for the first time.
Scope & Potential
Streaming platforms are key distributors in the micro-drama ecosystem, which involves production companies, writers, directors, and actors. Financing comes from digital media firms, streaming services, and advertisers. Popular franchises often expand into merchandise like apparel and licensed products.
According to iResearch, over 50% of micro-drama viewers pay to unlock episodes, spending CNY11 to CNY50 per month. By June 2024, there were 576 million micro-drama users in China, making up 52.4% of internet users. The industry’s revenue surpassed box office earnings for the first time in 2024.
Government Initiatives & Regulatory Framework
China’s National Radio and Television Administration (NRTA) has launched a “micro drama plus” plan to integrate micro dramas into various industries, fostering cultural and economic growth. The initiative aims to produce 300 innovative micro dramas in 2025, including “travel through micro dramas” to promote tourism and rural revitalization.
The NRTA has introduced a tiered review system for micro-dramas. Key and regular productions must be reviewed by provincial authorities before release, while smaller ones are overseen by streaming platforms, which handle content review, copyright compliance, and regular reporting. Platforms must ensure all micro-dramas display a government-issued license number before release.
Investment Trends & Local Government Engagement
The rise of micro-dramas has drawn investment from traditional media, film companies, and celebrity studios. Broadcast media are expanding into this space, fostering convergence, industry integration, and content innovation. Film companies are adopting new business models, while major brands in sectors like consumer goods are using micro-dramas to increase exposure and reach new markets.
Local governments have played a key role in the growth of the micro-drama industry, with production hubs in cities like Xi’an, Zhengzhou, and Hengdian, and promotion centers in Hangzhou, Guangzhou, and Shenzhen. Platforms are based in major cities like Beijing and Shanghai. Emerging hubs like Linping, Yuhang, Qingdao, Linfen, and Yangzhou are developing production bases and industry clusters.
To encourage growth, local governments offer funding, talent support, and infrastructure incentives, attracting businesses and boosting local economies and related sectors such as tourism and e-commerce. Linping, a leader in this effort, has allocated over 100 million RMB to support content creators and built China’s first micro-drama film base, hosting 300+ projects and providing essential services like scriptwriting and art direction.
Industry Integration
Micro-dramas have become a key tool in online marketing, serving as a new way for brands to drive traffic and engagement. In the micro-drama marketing space, the beauty industry leads the way, with e-commerce, personal care, home appliances, and beverages also ranking highly. Additionally, sectors such as maternity and baby goods, automotive, mobile apps, gaming, education, pet products, and home goods are increasingly leveraging micro-dramas to reach consumers and enhance brand visibility.
Challenges and Business Uncertainties
A key challenge is compliance with strict content regulations. The Chinese government and platforms enforce guidelines, with the NRTA recently removing over 25,000 episodes for inappropriate content. Content creators and distributors must navigate censorship and adhere to government policies.
Another challenge is copyright infringement, with piracy and unauthorized use of copyrighted material causing intellectual property concerns. Additional issues include competition, limited monetization models beyond ads, user retention in short-form content, and compliance with China’s strict cybersecurity and data privacy regulations.
The rapid growth of China’s micro-drama market presents opportunities for U.S. companies in the digital media, streaming services, and advertising industries.