2024 Short Drama Market: A Year of Explosive Growth and Transformation
In 2024, China’s short drama market achieved a historic milestone, reaching a total market size of 50.44 billion RMB—a 34.9% year-on-year growth—surpassing the annual box office revenue for the first time. This remarkable performance was driven by the following key trends:
- Intense Market Competition
Data shows that over 44,600 micro-short dramas were distributed in 2024, with more than 36,400 new dramas accounting for 82% of the total. However, the influx of new releases resulted in fierce competition, with an average lifecycle of just seven days per drama, intensifying the industry’s competitive dynamics. - The Rise of Free Short Dramas
Free short dramas emerged as the market’s “dark horse,” with their share increasing from 11% at the beginning of the year to over 50% by year-end. This marks the industry’s full transition into the “Free Era.” - Refinement and Diversification of Themes
Beyond traditional romance and urban genres, emerging themes such as silver-age dramas, workplace stories, and socially relevant topics began to gain traction. This shift reflects a move from “quick entertainment” to narratives catering to a broader range of emotional and social demands.
2025: The “Second Half” of the Short Drama Industry
As 2025 begins, the short drama industry is entering a deeper phase of transformation. Free models are becoming the norm, and hybrid monetization strategies (IAA + IAP) are being rapidly adopted.
Peter Sun’s Insights
- Embracing Free Models and Hybrid Monetization
Peter Sun emphasizes that free short dramas are a critical turning point for the industry, effectively broadening the audience base. Under hybrid monetization models that combine in-app advertising (IAA) with in-app purchases (IAP), short dramas can extend their lifecycle while offering creators a more stable source of income. - Premium Content as the Key to Success
Despite the high competition, Peter Sun notes that content quality and innovation remain the core drivers of success. With young audiences increasingly demanding high-quality content, creators must continually deepen their storytelling to stand out in the competitive landscape.
AI Technology: A Game-Changer for the Short Drama Industry
Peter Sun strongly acknowledges the transformative impact of AI technology on the short drama sector, stating: “AI is redefining the boundaries of creative efficiency and market promotion, offering creators unprecedented possibilities.”
- AI in Content Creation
Tools like Tencent Ads’ AI-powered “Miaosi Short Drama Smart Editing” assist creators by generating high-quality materials with precision and speed. This technology not only saves production time but also significantly enhances ad material click-through rates (CTR) and return on investment (ROI). - AI-Driven Monetization Strategies
AI also enables smart advertising strategies, such as tiered monetization and user profiling. These tools allow short dramas to target audiences more accurately and maximize revenue potential.
Peter Sun’s Conclusion and Outlook
“2024 was a turning point for the short drama market, and 2025 will be a critical year for the industry to reach new heights.”
Peter Sun believes the future of the short drama industry depends on three key factors:
- Innovation and Content Excellence
Deepening content creation and exploring emerging themes will be crucial for maintaining audience engagement. - Flexible Monetization Strategies
The combination of free models and hybrid monetization will be essential for platforms and creators to achieve sustainable development. - AI-Driven Empowerment
Leveraging AI to enhance production efficiency and optimize distribution strategies will be a critical competitive edge in the future short drama landscape.
Peter Sun calls on industry professionals to seize this historic opportunity with a broader vision and an innovative spirit, working together to propel China’s short drama market to new levels of brilliance.