In the rapidly evolving landscape of digital marketing, an interesting transformation is underway as platforms like TikTok for Business continue to expand their horizonsLast year, TikTok released the “2024 Short Drama Overseas Marketing White Paper,” which highlighted that the business model and user demand for short dramas have already been validated domesticallyThis promising foundation sets the stage for an explosive growth phase in international marketsCurrently, the primary commercial model for overseas short dramas is a hybrid monetization approach of In-App Advertising (IAA) and In-App Purchases (IAP), with projections estimating the market size to reach tens of billions and user numbers to swell to approximately 200 to 300 million.

ByteDance, the company behind TikTok, has recently launched its own short drama application focused on international marketsMedia reports suggest that their app Melolo, which emphasizes free access to short dramas, went live in markets such as Indonesia and the Philippines in November 2024. As the company continues to explore and validate its business model in these regions, it has also established a dedicated overseas short drama business team and is actively recruiting talent for various roles related to this venture.

Despite its launch, Melolo appears somewhat basic and despite its potential, the download figures remain modest without extensive media exposure

However, TikTok’s eventual foray into short dramas seems inevitable, with the main site already presenting substantial strategic value, beyond just independent apps.

According to a report by Xinda Securities, from November 2022 to October 2024, over 100 short drama applications have been active in overseas marketsExcluding those that saw no downloads over a three-month span, a total of 83 apps accumulated over 287 million downloads while generating in-app purchase revenues of approximately $490 millionThis timeline closely mirrors the craze for short dramas in China over the past two years, suggesting that domestic experiences are being rapidly applied to international contexts, unlike previous content trends such as “outbound web literature,” which experienced a time lag in commercial expansion between domestic and international markets.

For ByteDance, capturing the flow of traffic and incorporating overseas short dramas into their content matrix seems to be a standard expansion strategy

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However, with TikTok facing challenges in the United States—announcing the possibility of a shutdown unless a court rules otherwise—the urgency to build additional traffic channels is increasingly apparent.

One notable player in the short drama exploration space is leveraging the success of platforms like Douyin (the Chinese counterpart of TikTok) to carve out a niche akin to the “Red Fruit” that has thrived in its domestic marketPlayers opting for short drama initiatives typically possess relevant resources or experience in the domestic market, including web literature platforms holding script IPs, social media apps with users and traffic, or short drama platforms that have already proven their business models domestically.

Drawing from the experience in web literature, it becomes clear that the overseas market displays highly typified consumption tendencies for such entertainment products, harboring a particular affinity for specific genres and formulaic narratives

While themes like "dominant CEOs" and "forced acquisitions" may resonate worldwide, the enthusiasm for mythological and royal-themed narratives stems from the historical and pop-cultural contexts of Europe and America.

Similarly, short dramas also exhibit unique traits in user preferenceResearch conducted by TikTok For Business indicates that users perceive short dramas as more original compared to traditional media formats, showing a preference for distinct and creative storytelling—59% of users favor local dramas, whereas 22% display indifference towards the filming locations and languages used.

In 2021, ByteDance had rolled out its overseas web literature platform, Fizzo, dedicating significant resources to recruit writers and creatorsFizzo has since gained substantial traction in Southeast Asia, particularly in Indonesia, a country recognized by UNESCO for its low reading interest

However, within two years, Fizzo climbed to the top of Indonesia's Books Apps RankingThis accelerated expansion is attributed to localized operations and strategic referral from TikTok.

In China, the IAA + IAP hybrid monetization model has been effectively established for short dramasAs of November 2024, the monthly active user count for Hongguo short dramas surged to an impressive 140 million, with 40 million active usersBased on expertise in IP rights and user traffic, as well as success from domestic short drama apps, the platform has a multitude of operational opportunities—whether they resort to creating original dramas using local resources or translating and exporting existing domestic dramas.

However, the crux of the current stage remains TikTok itselfNot only is ByteDance in a race with other Chinese enterprises for a foothold in the global short drama market, but data from Sensor Tower reveals that ReelShort, a short drama app managed by Maple Interactive, recorded net revenues of $63.43 million in the third quarter of 2024, marking a 52% quarter-over-quarter increase and a staggering 327% year-over-year growth

Another app from the same studio, Sereal+, also experienced impressive growth, recording 2.21 million downloads and generating $13.45 million during the same period.

Nonetheless, the success of ReelShort goes beyond simply capturing local tastes to create hit series; it is significantly bolstered by strategic advertising investmentThe platform initially had average download and revenue figures upon its 2022 launch, but following the release of several hit series in 2023, relevant data began to surge dramatically.

In June of the same year, the popular short drama “Fated to My Forbidden Alpha” was launched, coinciding with ReelShort's heavy advertising campaignThe advertising materials for this series saw rapid spikes in both viewership and expenditure on TikTok, aligning closely with the upward trajectory of the app's download statisticsSensor Tower's analysis indicates that effective advertising is key for many leading overseas short drama apps, with the substantial majority of downloads stemming from paid promotions—often over 75% of total downloads.

The dependency on advertising for short drama launches is evident both domestically and internationally, with an even greater reliance overseas

The core value of the industrial chain flows toward content distribution, positioning platforms like TikTok, Meta, and Instagram as crucial elements in short drama marketingGuiding users to directly convert on TikTok itself, rather than simple app launches, potentially yields higher monetization efficiency in the current environment.

Moving forward, the internet attributes of overseas short dramas may outweigh the entertainment attributesReports from The Information as far back as November of last year discussed TikTok's consideration of producing Quibi-style short dramas to strengthen its impactHowever, Quibi serves as a cautionary tale rather than an exemplar.

With formidable backing from Hollywood producers and the former HP CEO, Quibi received $1 billion in funding upon its inception in 2018, receiving support from various powerful Hollywood entitiesQuibi aimed to target young adults aged 18-34, offering high-quality short dramas akin to Hollywood productions with episodes around ten minutes long.

However, Quibi’s rapid decline was shocking

In early April 2020, the platform launched but by the end of that month, app downloads plummeted from 300,000 on day one to below 100,000, with disappointing subscription numbers forcing Quibi to announce its closure by October that same year.

The notion of brevity in dramatic works isn’t novel yet Quibi represents an early enthusiasm among American investors focused on mobile internet consumption patternsFounder Jeffrey Katzenberg envisioned a format wherein traditional film lengths were segmentized into 10-minute episodes to better fill users' fragmented time—“Quickbites Big Stories,” as they coined.

In contrast, short dramas emerging from the Chinese market are deeply rooted in the ecosystem of social media, serving not only as entertainment but also integrating content marketing and product promotion functionalitiesThis endows them with a greater internet essence and dynamic interconnections with live streaming and e-commerce, creating a commercially closed loop.

Thus, the real elements that set overseas short dramas apart lie first and foremost in their highly standardized production processes aimed at cultivating hits

Specifically, these production workflows tend to be lighter, often spearheaded by small teams that can translate ideas into finished products within weeks or even daysRapid adaptations might be required to respond to trends and user tastes, leading to the “shoot while airing” strategy.

This model has already been validated in the web literature sector, where efficient and cost-effective production, paired with user-driven interests, allows for large-scale generation once a “hit” is identified, dovetailing seamlessly with the content creation logic of platforms like TikTok.

Moreover, a gradual adoption of domestic short drama commercial models may become an essential focus in the forthcoming phase of overseas short dramasGeek Park reported on one of Maple Interactive’s Vice Presidents, Naya Peng, who discussed the lessons gleaned from the Quibi case

Quibi's approach left doubts regarding the acceptance of micro-short dramas in European and American markets, as the subscription model resembled traditional streaming services like Netflix, which necessitated users to commit to a set monthly fee.

Peng argued that with limited initial content, it's difficult to convince users to fully embrace subscription models from the startInstead, a pay-per-episode model allows greater flexibility and choiceIt is anticipated that overseas short drama commercialization might initially implement a paywall, progressively exploring subscription models, ad-supported free content, and bespoke marketing initiatives much as witnessed in domestic markets.

This market education journey promises to be more challenging than mere content exportsYet, for TikTok, which boasts a vast user base, it serves as a critical point for establishing its authority in the overseas short drama space.

In conclusion, while ByteDance's overseas endeavors remain heavily concentrated within TikTok, the company’s launch of independent apps and enhancement of in-platform conversion mechanisms illustrate their commitment to product and business diversification

Beyond short dramas, initiatives in reading apps like Fizzo and MyTopia Books, and even those in the AI field with chatbots like Doubao and Dream AI, showcase the breadth of ByteDance’s ambitionsAdditionally, CapCut, the international version of their video editing app, is gaining considerable traction internationally, ranking as the second most active app globally by October last year, just behind ChatGPT.

While ByteDance aspires to expand its global mobile internet ecosystem dramatically, reliance on a single platform could expose the company to elevated market and policy risksThe present moment calls for a reinvestment of TikTok’s influence across a broader range of products, capitalizing on existing technical and resource capabilities.

However, the race for global market influence remains open to all internet companies, making this an opportune momentOn January 13, a wave of dissatisfied TikTok users in the United States began flocking to Xiaohongshu, resulting in a rapid increase in downloads that propelled it to the top of the US App Store’s free charts