From a macro perspective, the current consumption models of micro-dramas mainly fall into three categories: pay-per-episode unlocking, VIP subscription for premium content, and In-App Advertising (IAA) where users watch ads to access free content. While most platforms adopt a hybrid model, Hongguo Short Drama exclusively relies on the IAA model.
Hongguo briefly experimented with a membership model (¥10/month or ¥98/year) to remove ads but quickly reverted to a fully free model. This approach significantly lowers user costs, aligning with mainstream consumer preferences and enhancing platform stickiness. As a result, Hongguo has emerged as a standout player in the short drama market, becoming one of the few successful apps in this space.
Beyond free access, Hongguo has also innovated in content distribution and user interaction.
Content Innovation:
Homepage Design: The app features two main entry points:
Home Tab: Similar to TikTok, it uses a single-column waterfall flow for an immersive browsing experience. Each video links directly to the drama’s main page and the actor’s profile, reducing user drop-off.
1. Theater Tab: This section adopts a three-column layout, displaying nine dramas simultaneously, alongside subcategories like “Recommendations,” “New Releases,” and “CEO Themes,” improving content discoverability.
2. Diverse Content: Hongguo offers a wide range of genres, including urban, romance, and workplace dramas. Popular TikTok dramas like *”I Became a Stepmom in the 80s” and “The CEO’s Wife is a Billionaire” are also available, alongside exclusive content. Additionally, the platform features movies, TV series, comics, and audiobooks, catering to diverse user preferences.
User Interaction:
Hongguo incentivizes user engagement through its “Welfare” section, prominently placed on the homepage. Activities like “Watch and Earn” allow users to earn diamonds (convertible to cash) by watching dramas, signing in, completing tasks, or viewing ads. This model, validated by platforms like Toutiao and Pinduoduo, attracts users with ample leisure time, such as students, stay-at-home parents, and retirees, boosting retention and activity.
Why Hongguo Stands Out:
Hongguo’s success is largely attributed to its parent company, ByteDance. With access to ByteDance’s vast resources, including original content from Tomato Novel (e.g., “I Became a Stepmom in the 80s”) and TikTok’s massive user base, Hongguo benefits from a robust ecosystem. This synergy enables efficient IP adaptation, user acquisition, and monetization, setting it apart from competitors like WeChat Mini-Program dramas and Tiantian Kanju.
Opportunities for Creators:
Hongguo’s rapid growth has created lucrative opportunities for creators. In 2024, the platform’s total revenue sharing exceeded ¥200 million, with over 20 copyright partners earning over ¥100 million annually. However, challenges remain, including the need for higher-quality content to retain ad-supported viewers and stricter regulatory scrutiny.
Regulatory Challenges:
As the micro-drama market grows, regulatory oversight has intensified. Recent guidelines from the National Radio and Television Administration (NRTA) target dramas promoting materialism, extravagance, or unethical values. Hongguo has responded by removing non-compliant content and suspending new uploads for review, signaling a shift toward stricter content standards.
Conclusion:
Hongguo Short Drama’s innovative IAA model, combined with ByteDance’s ecosystem, has positioned it as a leader in the micro-drama market. However, as the industry matures, both platforms and creators must adapt to evolving user expectations and regulatory demands to sustain growth.