A couple based in Beijing succeeded in capturing industry opportunities during the Spring Festival period, securing success with hit short drama series such as “I Became a Stepmother in the Eighties.” The series set a recharge record of 20 million yuan as soon as it was launched. Dianzhong Technology bet on multiple popular works and collaborated with well-known content creator Mimi Miao to release “Post-80s Stepmother,” and also produced other popular short dramas like “Dragon Year Brings Good Fortune.”
The actual controllers of Dianzhong Technology are the husband and wife team of Chen Ruiqing and He Chunhong, who together hold 55.97% of the company’s shares. Chen Ruiqing serves as the chairman of the company, managing daily business, while He Chunhong is a director. Together, they have run the business for over a decade and, although not listed on the capital market, have achieved a respectable position in the field of internet literature and have now earned a substantial income in the short drama market.
According to internal senior management, since last September, Dianzhong Technology’s monthly recharge income has been stable between 400 and 500 million yuan. Such performance is inseparable from the cooperation between Chen Ruiqing and Mimi Miao, whose real name is Ma Ling, who runs Tinghua Island Company, which has produced many popular short dramas and are distributed by Dianzhong Technology.
According to statistics, the cost of short dramas produced by Dianzhong Technology is not high, but the profits are considerable. For example, the 10-day shooting of “Post-80s Stepmother,” with only 80,000 yuan invested in post-production, has achieved a recharge income of over 100 million yuan. Data from DataEye indicates that in the market competition of popular short dramas, Dianzhong Technology’s works stand out and frequently top the charts.
The success of Dianzhong Technology in the online literature industry is due to its broad channels and excellent operational capabilities. With various product platforms that have a total of 800 million registered users worldwide, and sophisticated operational tactics in output and promotional marketing, Dianzhong Technology has become a leading figure in the industry.
Dianzhong Technology owns several works such as “Favored by Fortune,” “Supreme Heavenly Dragon,” and “Spring Plum Blossoms Want to Be Drunk,” which perform excellently in the short drama market. Since December 2023, this platform’s works have frequently appeared on various popular charts, becoming a loud brand in the industry.
The company has three core business segments of short drama production, including script adaptation, film shooting, and content promotion. Their short drama projects, from the initial preparations to shooting and then to the final post-production, typically have a production cycle of two to three months. Executive President Li Jiang revealed that the company has an output of about 50 to 60 short dramas per month and plans to launch up to 100 original short dramas overseas in 2024, which will be shot entirely abroad. And for the success of a short drama, the key lies in the attractiveness of its plot.
Leader Chen Ruiqing firmly believes in the importance of empowerment and allows the team to independently produce short dramas. Before the start of each short drama, key roles such as the producer, director, and screenwriter form a special topic selection team to select suitable IPs for adaptation into short dramas. Most of the company’s short dramas are adapted from internet novels, utilizing existing character settings and plot structures. During the rewriting process, screenwriters set cliffhangers or conflict points at the end of each episode to attract the audience to continue watching.
The company has a content resource pool with a wealth of materials and through close cooperation with more than 300 domestic and international manufacturers, the company has obtained over 300,000 copies of various high-quality copyright resources.
Chen Ruiqing prefers to work with teams that have experience in creating hit works, in order to ensure the profitability of the projects. The main profit models for micro-series mainly include two parts: user-paid recharges and advertising marketing placements. Micro-series, in comparison to traditional series, have shorter durations per episode, usually between 1 to 3 minutes, allowing viewers to complete watching the entire series in a short period of time; the plot development pace is also much faster, with content that seeks to be impactful and containing twists, easily resonating with the audience’s emotions. A micro-series typically has 80 to 120 episodes, with the first dozen or so offered for free to attract viewers’ interest, and the subsequent episodes requiring payment to watch.
Chen Ruiqing says that despite the industry’s bright prospects viewed from the outside, in reality, the short-series business is not a highly profitable market. “Revenue and profit are two different things; our gross margin is actually only 10%,” he admits openly, that the short-series industry is not as lucrative as people imagine.
Originally working in the software development industry and a graduate of Zhejiang University with a major in computer software, Chen Ruiqing founded several software companies from 1995, served as vice president at Zhuowang Digital under China Mobile, and was one of the key figures in the “Mobile Monternet” service. Until before 2022, Dianzhong’s main business was still online literature, with its platforms Kuai Kan Novels and Watermelon Free Novels reaching an annual revenue of 1.7 billion at one point. Although the company had twice attempted IPOs, both ended in failure. Constrained by development bottlenecks in online literature, Chen Ruiqing and his team resolutely entered the short-series industry.
In its early transition phase, Dianzhong Technology experienced a period of exploration; the short-series released early on did not cause much sensation. However, in 2023, the company gradually discovered the market’s preferences, releasing hit series in both male and female channel categories, and successfully establishing a firm foothold in the short-series industry. In just two years, Dianzhong Technology has become a leader in the short-series industry. Faced with the rapidly changing market for short-series and the potential for major reshuffles at any time, Chen Ruiqing understands that to continue to be successful, one must remain vigilant. When asked if there were any further plans to go public, Dianzhong said that the company is currently more focused on the development of its core business.
Despite the industry’s booming development, it has also been accompanied by many disordered phenomena. For this reason, regulatory authorities have already begun to take measures to strengthen the filing and examination management of online micro-series and promote the overall improvement in creative quality. Even though the regulatory policies have become increasingly stringent, they have not diminished the industry’s enthusiasm. New companies are joining the competition, the competitive landscape is getting more intense, and the pace of content updating is accelerating. Everyone is making every effort to win over audiences, and improving the quality of the series has become a key battleground for companies in the market. Dianzhong Technology continues to increase investment in its series and prepares for high-quality projects, “In today’s short-series industry, to stand out, it is not enough to just achieve a score of 60, we need to reach at least 90.”
Chen Ruiqing frankly states: This couple needs to have the ability to fight a protracted battle and produce more excellent works.
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