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Multiple platforms announce crackdowns on illegal low-quality micro short dramas, led by Bilibili's decline in short video stocks

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Recently, Tiktok, Kwai and WeChat collectively announced that they would crack down on illegal low-quality short plays, which triggered the adjustment of short video concept stocks. As of press release, Bilibili-SW (09626. HK), Weimeng Group (02013. HK), Yinguniverse (03700. HK) and Kwai - W (01024. HK) fell 6.18%, 5.16%, 3.39%, 3.19% and 1.92% respectively.
Note: Performance of short video concept stocks
In terms of news, recently, Tiktok, Kwai and WeChat collectively announced to crack down on illegal low-quality micro skits.
Taking Tiktok as an example, on November 16, the company released Tiktok's announcement on cracking down on illegal micro skits, announcing that 119 illegal micro skits had been removed from the small programs recently, and 1188 Tiktok accounts had been disposed of for illegal promotion of micro skits.
On November 14, Kwai released a special governance announcement for illegal micro short programs, and more than 10 illegal micro short programs were taken off the shelves. At the same time, 13 accounts publishing illegal content were punished according to the degree of violation.
On November 10th, WeChat released a notice stating that recently, the platform found through inspection and review that some micro short drama mini programs had behaviors such as not being registered for drama compliance or having negative values oriented content. According to relevant national laws and regulations, as well as the relevant provisions of the Tencent WeChat Software License Service Agreement and the WeChat Mini Program Operation Specification, the platform has removed some non compliant mini drama dramas and dealt with relevant non compliant mini programs.
In addition to cracking down on non compliant and low-quality micro short dramas on major platforms, according to a report released by the China Network Audiovisual Program Service Association on Tuesday, the State Administration of Radio, Film and Television has taken multiple measures to continuously carry out governance work on online micro short dramas.
Since late November 2022, the State Administration of Radio, Film and Television has organized and carried out a special rectification work on "mini program" network short dramas for three months, achieving positive results. As of February 28, 2023, a total of 25300 mini dramas containing pornographic and vulgar content, bloody violence, low style, and aesthetic vulgarity, totaling 1365004 episodes, were offline, and 2420 "mini programs" containing illegal content were offline, forming a deterrent effect and effectively curbing the brutal growth of online mini dramas.
Based on the above news, the short video concept stocks that have continued to rise recently have seen a full line correction today, with Bilibili and Weimeng Group leading the decline.
Why is the concept of short dramas continuously popular in the market?
Compared to regular dramas, short dramas can set strong conflicts and reversals in a short period of time, providing dense laughter, excitement, and strong emotions, bringing instant satisfaction and efficient viewing experience to the audience.
At the same time, the popularity of the short drama market can be seen from the download volume of apps. According to third-party data, on November 12th, the Chinese online overseas short drama app "ReelShort" surpassed TikTok in the free list of iOS entertainment apps in the United States and rose to the top; And on the same day, it ranked first in the UK, Canada, Australia, and South Africa; Ranked in the top five in countries such as India, Malaysia, and Egypt.
According to public data, as of 2020, the number of short dramas launched on medium and long video platforms alone exceeded 300. There are many works with over 100 million views among them. In addition, the sadistic short drama "provoke" released in 2023 has currently exceeded 20 million yuan in revenue distribution. Short dramas that focus on the "cool drama" style, with the support of low threshold and short investment return period, are expected to have a market size of 20-30 billion yuan in 2023.
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