ByteDance has rapidly expanded its reach in China’s online entertainment sector with Hongguo, an AI-enhanced short-drama platform that now exceeds the daily active users of the country’s four major long-form streaming apps combined.
- Hongguo reached 168 million daily active users in July 2026.
- It surpassed Tencent Video, iQiyi, Youku, and Mango TV combined.
- Short AI-generated dramas are gaining mainstream acceptance.
What happened
ByteDance’s Hongguo, launched in 2023, has quickly become a dominant force in China’s streaming landscape by focusing on AI-powered short dramas. The platform’s use of ByteDance’s proprietary AI video models, such as Seedance, has enabled the creation of engaging, AI-animated series that resonate strongly with audiences.
By July 2026, Hongguo’s daily active user count reached 168 million, surpassing the combined DAUs of the country’s largest long-form streaming services: Tencent Video, iQiyi, Youku, and Mango TV. This growth was accompanied by a significant rise in total monthly viewing time on Hongguo, contrasting with steep declines experienced by these traditional platforms.
Why it matters
Hongguo’s rise highlights a shift in Chinese consumer preferences towards shorter, AI-enhanced content that delivers entertainment more efficiently and in highly consumable segments. This evolution presents a challenge to legacy streaming platforms that rely on longer-form content and subscription models.
This trend is not just about format but also about storytelling innovation. Renowned director Jia Zhangke has publicly supported short-form dramas as a valid narrative form, reflecting growing industry recognition of these new content approaches. With major filmmakers now engaging with short dramas, Hongguo’s success extends beyond numbers into cultural influence.
What to watch next
Industry observers should monitor how traditional streaming platforms respond to Hongguo’s disruptive model, especially whether they adopt AI technologies or shift towards short-form programming to regain viewer engagement.
The expansion of AI-generated content and its economic model—free access supported by advertising revenue and shared creator earnings—may reshape content production incentives and business strategies across China’s digital entertainment market.