ByteDance AI Drama Hongguo Tops China Streaming Rivals
Big Tech firm ByteDance, parent company of TikTok, has achieved significant success in China with Hongguo, an artificial intelligence powered short drama platform. Launched in 2023, Hongguo quickly gained prominence amid China's short drama boom. A surge in AI generated content propelled the app past some of the country's major professional streaming platforms.
Hongguo has exceeded the daily viewer numbers of China's four largest long form video streaming applications, including iQiyi, which is often called China's Netflix. Its free shows and increasing volume of AI generated content are reshaping competition within the online entertainment sector. Hongguo recorded 168 million daily active users in Jul., more than double the figure from the previous year. This data, from mobile analytics service QuestMobile, was cited in an Aug. research note by Japanese securities firm Nomura. That figure surpassed the combined daily active users of Tencent Video, iQiyi, Alibaba Group Holding's Youku, and Mango TV apps, which are the four largest long form streaming platforms in China, according to Nomura.
So, Hongguo's swift expansion demonstrates ByteDance's growing influence over Chinese consumer attention. Traditional streaming platforms are observing a decline in viewership. Total monthly time spent on Hongguo rose by 157 per cent year on year in Jul., affecting its four long form competitors. These rivals experienced various decreases on the mobile front. Monthly time spent on iQiyi decreased by 27 per cent. Youku reported the sharpest decline, at 47 per cent. Tencent Video and Mango TV recorded falls of 31 per cent and 24 per cent respectively. Alibaba owns the South China Morning Post.
The Hongguo platform provides users with access to complete short drama series without charge. The app generates revenue through advertising and distributes a portion of the proceeds to content creators. This growth occurs despite ongoing critiques of short dramas. Critics often cite formulaic plots, inconsistent production quality, and a focus on immediate satisfaction.
But, as the short drama format attracts larger audiences, it also appears to be gaining acceptance from established filmmakers. They recognise it as an alternative method for telling stories. Chinese director Jia Zhangke, known for films that have won international festival prizes, commented on this development. He stated in a recent social media post that a story's length, whether two hours or two minutes, is "a question of form, not pedigree." Jia further noted, "If two minutes move people, then they have done their job. If two hours fail to, they cannot apply for extra time."
A recent review by the SCMP found that eight of the 10 titles on Hongguo's popularity chart were AI generated dramas or animated series. This illustrates the format's current prevalence. A distinct Hongguo application dedicated to AI animated series attained 16 million daily active users in Jul. This represented a 37 per cent increase from Jun., according to Nomura.
And, five ByteDance services were among China's 20 most used applications by monthly time spent during Jul. These included Douyin, Douyin Lite, Hongguo, news aggregator Toutiao, and online reading platform Fanqie Free Novels. Collectively, these applications accounted for 35 per cent of the total time users spent on the top 20 apps in Jul. Nomura's report indicates this, showing ByteDance's significant position in China's mobile sector. Douyin also surpassed Weixin in monthly time spent for the first occasion, according to the same report.
Hongguo's daily active users reached 168 million in Jul., surpassing combined figures of four major long form streaming platforms.
The platform's free, AI generated content has significantly impacted online entertainment competition in China.
Monthly time spent on Hongguo increased by 157 per cent year on year in Jul., while rival platforms experienced declines.
Chinese director Jia Zhangke defended short dramas as a valid form of art, regardless of their length.
ByteDance maintains a strong presence in China's mobile sector, with five of its services among the 20 most used apps by monthly time spent in Jul.
Source: SCMP
