The Zhitong Finance App learned that Huajin Securities released a research report saying that top content producers joined hands with leading ecological platforms to enter short dramas and superimpose their comedy-themed endowments, which is expected to empower the development of short dramas in the long term. Focus on high-quality content and IP suggestions: Chinese Online (300364.SZ), etc.; Film and TV production suggestions: Huayi Brothers (300027.SZ), etc.; Technical Empowerment Suggestions Focus: Tianyu Mathematics (002354.SZ), etc.

Hot events:

On January 29, Douyin announced that it had reached an exclusive boutique short drama collaboration with Chow Xingchi. The two sides will jointly develop and operate the “9527 Theater”. The first season of the first short drama “Golden Pig Jade Leaf” is expected to launch on Douyin in May this year. Through collaboration with Douyin, as the sponsor, Chow will work with young creators to directly create content for users based on the “Director Chow” Douyin account. In recent years, due to the iterative progress of the media, the creation of short online literary novels and short dramas have been empowered in both directions, laying a solid foundation for overseas business. The introduction of top-class content into short dramas with comedic themes is expected to positively catalyze the industry in many ways; online articles are rapidly gaining momentum, and it is expected that multi-wheel drive will enable the development of short dramas.

▍ The main views of Huajin Securities are as follows:

Top content producers have joined hands with leading ecological platforms to launch short dramas, which is expected to bring positive catalysis to the industry.

On January 29, Chow Sing-chi posted a video on her Douyin account with the caption “9527 Theater” officially opened today. According to public information, as a famous actor from Hong Kong, China, Chow Sing-chi has acted in and directed many famous comedy works. According to Douban, most of his works are excellent works with high scores.

The Internet Audiovisual Program Management Department of the State Administration of Radio and Television proposed several times in 2023 that short dramas should be “small but not weak, short but not shallow, and have quality.” The theme selected for “Little People and Big Times” in Chow Sing-chi's past works is the model of “Seeing Little Knowledge”. The entry of top traditional content creators into short dramas may generate strong calls, stir up waves, and promote the positive development of the industry.

Comedy fits the context of the current era, and is expected to resonate on the same frequency as short dramas in the fragmented era.

The short drama only took a year or two from its inception to its rapid growth period. During this period, the themes of most skit dramas were mainly traversal and rebirth, grassroots counterattack, and secrets of giants. The plot showed characteristics such as “reversal,” “conflict,” and “pomp,” thus attracting attention. Industry insiders believe that currently most skits are about cities, costumes, suspense, etc., while the comedy genre still has a “blue ocean.”

Looking at the movie market, according to the Cat's Eye Pro App, the top three movies for “Wanting to Watch” in the upcoming Spring Festival program this year are “Flying Fast Life 2” (713,800), “Bears Rage: Reversing Time and Space” (636,700), and “Hot and Hot Hot” (525,800). All three films are comedy-themed. Comedy themes are popular in the long video market, but in the short video market, there is a relatively blue ocean. The addition of the “nonsensical” comedy model represented by Chow Sing-chi may make up for the current lack of comedy content in the short drama market, enrich the content side, and empower the development of the short drama industry in the long term.

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Policy uncertainty, demand falling short of expectations, risk of potential disputes over copyright licensing, etc.