Huajin Securities released a research report stating that in Q3 2025, China's long-form drama market exhibited "notable dominance by top-tier productions, frequent high-quality content releases, stronger platform influence, and diversified business models." Although the overall market volume saw a slight decline, content quality improved significantly.

For micro-dramas, data from iiMedia Research shows that China's micro-drama market is projected to reach RMB 67.79 billion in 2025, up 34.40% YoY, with expectations to exceed RMB 150 billion by 2030. Previously dominated by simplistic "wish-fulfillment" genres, the market has evolved with industry growth and rising audience sophistication, leading to diversified themes and brand-IP customization becoming mainstream.

**Key Insights:** - **Global Streaming Boom:** Netflix recently agreed to acquire Warner Bros. Discovery’s film/TV studios and HBO Max streaming services in a deal valued at $72 billion (equity) and $82.7 billion (enterprise value). - **Long-Form Drama Trends:** Scripted series, emphasizing character development and social narratives, are thriving. HTF Market Insights forecasts the global scripted series market to hit $108 billion in 2025, with a 5.4% CAGR through 2033 ($165 billion). Streaming platforms’ demand for high-quality content and binge-watching preferences fuel this growth. - **Streaming’s Economic Impact:** Subscription platforms are set to dominate global TV economics, projected to generate $190 billion annually by 2029 via 2 billion paid subscribers, per Ampere Analysis.

**Domestic Long-Form Drama Market (Q3 2025):** - Top 20 long-form dramas garnered 14.5 billion valid plays (-10% YoY). - 13 new dramas averaged 10–20 million valid plays within 30 days (+7 YoY). - Exclusive releases rose to 79% (+6pp YoY), with Youku and Mango TV deepening exclusive distribution strategies (+20–30% YoY). - Nearly 80% of new dramas were accessible to non-VIP users (+30pp YoY). - Period dramas led viewership (29% valid plays for romance-themed content), while fantasy, suspense, and xianxia elements each exceeded 10% share.

**Micro-Drama Market Expansion:** - IP adaptations surged 17x YoY (Jan–Oct 2025 vs. full-year 2023), with platforms like Tomato Novel and Qimao opening IP libraries. - Brands increasingly partnered with micro-dramas (233 collaborations Jan–Aug 2025), with 87 new entrants and a 60%+ repeat investment rate.

**Investment Recommendations:** Focus on companies like Mango Excellent Media (300413.SZ), Huace Film & TV (300133.SZ), and DAMAI ENT (01060.HK), benefiting from content upgrades and IP monetization.

**Risks:** Underwhelming content performance, industry competition, and regulatory uncertainties.