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[BUSINESS] · China · 3 sources

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Tencent and ByteDance compete in China's short drama market

A trending topic in China regarding the cognitive effects of short dramas, often referred to by netizens as ‘electronic opium,’ has highlighted the intense competition between tech giants ByteDance and Tencent. Users have reported feeling a sense of ‘reduced intelligence’ or mental fatigue after consuming highly addictive, fast-paced content. Medical professionals, including Dr. Zou Ying from the Second Affiliated Hospital of Zhejiang Chinese Medical University, explain that while actual IQ does not decrease, the constant stimulation of plot twists causes dopamine depletion, leading to temporary issues with focus and comprehension.

In the market, ByteDance’s Hongguo short drama app has seen significant growth, reaching 168 million daily active users as of July 2026. Data indicates ByteDance-related apps hold a 41.8% share of mobile usage time, while Tencent-related apps hold 28.6%. To compete, Tencent has introduced ‘Green Bubble Short Dramas’ via WeChat mini-programs, offering incentives of up to 100% revenue to third-party creators to capture market share from ByteDance.

Entities

ByteDance · Hongguo · Tencent · WeChat · Zhejiang Chinese Medical University