The entertainment industry in 2025 has become more complex and dynamic. The film market finally surpassed the 50-billion-yuan box office milestone, with animated films contributing half of the total revenue, while female audiences emerged as the dominant demographic. In the TV series market, the trend of "long-short integration" became prominent, with historical, period, and urban dramas achieving breakout success. Reality shows and variety programs maintained their stronghold, while new IPs gained traction through viral topics and generational clashes. The short drama market, valued at over 63 billion yuan, experienced explosive growth, with platforms like Hongguo ranking fourth in monthly active users (MAU) among online video platforms. The emotional economy also fueled a surge in live performances. Amid these seismic shifts, platforms and companies are seeking "more predictable growth" to navigate challenges and cycles.
This year, Entertainment Unicorn continues its annual review series, analyzing key industry trends across short dramas, long-form series, variety shows, and music. This article, the first in the series, explores the booming short drama market in 2025, where hits like *Family Matters* and *Summer of Fendra* amassed 3 billion views. What drives this market’s core appeal? We seek answers in this year’s standout works.
**The Rise of Short Dramas** While traditional film and TV face struggles, short dramas remain the only entertainment sector experiencing rapid, sustained growth. According to DataEye’s *2025 H1 Micro-Short Drama Industry Report*, China’s short drama market is projected to reach 63.43 billion yuan in 2025, with nearly 700 million users—70% of the country’s internet population. By 2027, the market is expected to hit 85.65 billion yuan, with a 19.2% CAGR.
Policymakers have also stepped in. The National Radio and Television Administration launched the "Micro-Short Drama+" initiative to promote high-quality development, fostering hubs like Zhengzhou and Xi’an as "short drama capitals." In just three years, short dramas have achieved what long-form series took a decade to accomplish, with premium production becoming the norm.
**The Era of Refinement** 1. **IP Serialization**: Over 200 IP sequels have debuted on Hongguo, with *Yun Miao 5*, *Great-Grandma 3*, and *Family Matters 2* setting records. Spin-offs like *Summer of Fendra* boosted interest in their parent series, demonstrating the power of interconnected storytelling. 2. **Higher Production Standards**: S-tier dramas now feature 15-30-day shooting cycles, bigger budgets (e.g., *Family Matters 2* cost 6 million yuan), and A-list talent like singer Zhou Shen for theme songs. 3. **Innovative Storytelling**: Works like *Summer of Fendra* and *The Genius Heiress* broke away from clichés, offering nuanced narratives and cinematic visuals. 4. **Enhanced Marketing**: Premieres, fan events, and magazine features—once reserved for long dramas—are now standard for top short dramas.
**Beyond the Chaos: Star-Making and Studio Dominance** Short dramas now rival traditional media in star-making power. Actors like Li Keyi and Liu Xiaoxu gained massive followings, with brands rushing to collaborate. Studios like Tinghua Island and Stable Studios have carved niches in cultural, urban, and romance genres, leveraging their unique styles to build loyal audiences.
**Platform Wars: The Battle for Dominance** Hongguo leads the free, ad-supported (IAA) short drama market with 245 million MAU, far outpacing rivals like Hippo Theater (50 million MAU). Competitors like iQiyi, Tencent, and Youku are doubling down, launching dedicated short drama channels and incentive programs.
Hongguo’s influence extends to industry infrastructure. Its centralized copyright management and revamped revenue-sharing model (offering 40% royalties for top-tier scripts) aim to standardize production while raising concerns about talent concentration.
**Future Growth: Overseas Expansion, Male-Targeted Dramas, and Animated Shorts** 1. **Global Markets**: Chinese-backed platforms like ReelShort and DramaBox dominate overseas, though profitability remains elusive. 2. **Male Demographics**: Once-neglected male-oriented dramas (*The Bodyguard*, *Rebirth*) are gaining traction, offering long-tail potential. 3. **Animated Shorts ("Manju")**: Combining comics, animation, and short-form storytelling, this format is exploding, with platforms investing heavily in AI-powered production.
In conclusion, short dramas—fast-moving, boundary-pushing, and endlessly inventive—are redefining entertainment. The next big trend? It’s likely something no one has yet imagined.
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