The Zhitong Finance app learned that Huajin Securities published a research report saying that the special rectification work for short dramas has begun as scheduled, and is now beginning to bear fruit. Supervision has been gradually improved over time, and a normalized management mechanism has gradually been formed. The continuous improvement and smooth implementation of regulatory policies relating to micro-dramas will contribute to the steady development of the industry. Related targets: Chinese Online (300364.SZ), Huace Film and Television (300133.SZ), Shanghai Film (601595.SH), Jebsen (300182.SZ), Zhidu Co., Ltd. (000676.SZ), Tianxia Show (600556.SH), etc.

Incident: On the evening of November 20, Douyin issued a notice stating that “in order to promote the compliance development of the short drama advertising business, the qualification requirements for new clients who run short drama advertisements have been updated.” The notice came into effect on November 23. TikTok requires advertisers to have three types of documents. 1. “Radio and Television Program Production and Business License”, 2. “Value-added Telecom Business License”, 3. “Information Network Dissemination Audiovisual License” or “Internet Culture Business License”. ="white-space: normal; word-spacing: 0px; text-transform: none; color: rgb (0,0,0); orphans: 2; widows: 2; margin: 5px0px; letter-spacing: normal; text-indent: 0px; text-decoration-style: initial; text- decoration-color: initial; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial">

The special rectification work for short dramas began as scheduled, and is now beginning to bear fruit. According to news from the China Internet Audiovisual Program Service Association on the 15th, the State Administration of Radio, Film, and Television will once again carry out a one-month special rectification work on online short dramas and propose speeding up the formulation of the “Rules for the Creation, Production, and Content Review of Online Short Dramas.” At present, phased results have been achieved: WeChat issued the “Notice on Further Regulating the Content of Mini-Programs” and the “Notice on Phased Governance of Mini-Program “Mini-Skits” and “Notice on the Phased Governance of Mini-Program “Mini-Skits”, which set out the operation and management standards for micro-miniseries. Recently, in accordance with the requirements of relevant national laws and regulations and the relevant provisions of the “Tencent WeChat Software License Service Agreement” and “WeChat Mini Program Operation Code”, some illegal mini-programs have been removed, and the relevant illegal mini-programs have been dealt with. Kuaishou removed more than 20 minor dramas that violated regulations. At the same time, 27 accounts that posted illegal content were punished accordingly according to the extent of the violation. Some of the mini-programs in the Douyin survey contained illegal content such as bad value orientation, vulgar “edge scraping,” etc., and some accounts involved promoting illegal micro-dramas or posting a large number of homogenized mini-drama content to gain traffic. Recently, a total of 119 illegal mini-dramas have been removed, and 1,188 Douyin accounts that promote micro-dramas in violation of regulations have been disposed of.

Supervision has been gradually improved over time, and a normalized management mechanism has gradually been formed. Beginning in late November 2022, the State Administration of Radio, Film, and Television focused on organizing and carrying out special rectification work on “mini-program” online mini-dramas over a period of 3 months. As of February 28, 2023, more than 25,300 short dramas containing pornographic vulgarity, bloody violence, poor style, and aesthetic vulgarity have been released, and 2,420 “mini-programs” containing illegal content have been removed, creating a deterrent effect and strongly curbing the barbaric growth of online mini-dramas.

The State Administration of Radio, Film, and Television has normalized the management of online micro-dramas: 1. Establish a mechanism for the biweekly submission and disposal of data and the regular publication of announcements. Since March 2023, platforms such as Douyin, Kuaishou, Tencent, Station B, Xiaohongshu, and Good-Watch Video have issued more than 40 public announcements, cleaned up more than 350,000 episodes (articles) and 20.55 million minutes of vulgar and harmful online miniseries; and disposed of 429 “mini-programs” and 2,988 accounts that spread vulgar and harmful online miniseries in a hierarchical manner. 2. Establish a “black list” mechanism for online micro-dramas. Online audiovisual platforms are required to effectively assume their main responsibilities, promptly report illegal online mini-dramas discovered, put them on the “black list,” and report them to the entire industry, supervise the timely removal of all online platforms, and promote joint participation in governance.