WHAT VIDEO FORMAT HAS OVERTAKEN CHINA'S BOX OFFICE?

For the second consecutive year, the Chinese market for short video dramas is larger than China's movie box office. And while the big screen remains very popular in China, with an estimated 500 million cinema-goers, short video dramas have almost 700 million users. Every day, 700 million hours of short video dramas are watched by the Chinese population, accounting for 25% of their screen time.

The cinema market has never fully recovered to pre-pandemic levels, and the average age of the moviegoers is increasing. In 2019, people younger than 30 accounted for 64% of all ticket buyers; that share has since decreased to 38%. Meanwhile, more than three-quarters of short video users are younger than 35.

Short video dramas are basically soap opera series of 1 - 3 minute episodes on (short) video platforms. Typically, viewers receive a few episodes for free but must pay to watch the full series.

Short video dramas are also used to generate traffic to e-commerce platforms like Pinduoduo (substack.com/@techbuzzc…), Temu's older sibling. What's more, they often involve product placement, and brands like Starbucks have even created their own free short video dramas. In Starbucks' case, it involved a barista travelling back in time to open a coffee store in a historical dynasty. Yes, I know ... but it is exactly this mindless entertainment for people with short attention spans that makes these so popular.

Many MCNs (Multi-Channel Networks) that have been involved in live commerce have taken the step to short video dramas, as the live commerce market shows signs of 'involution'.

Last year, at Tech Buzz China, we published an extensive report on the format (techbuzzchina.substack.…), which is also starting to gain traction outside China.

In April, we are visiting a short video drama studio in Xi'an, where 25% of all productions take place, during an exclusive K5 - Future Retail meets ChinaTechTrip study tour. I'm really looking forward to this.

Source: Huxia

-Ed