It's just that they have money.

Xu Wen's efficiency was as high as ever. When Fang Chen woke up the next day, the research report on the short drama market had already been sent to his phone.

The report is short, but it is data-intensive.

Xu Wen's habit is to put the conclusion first, followed by detailed data sources and analysis process, so Fang Chen directly flipped to the conclusion page.

The title is in bold: Not recommended.

The following are three core reasons.

First, the short drama market is already a red ocean. Top platforms monopolize more than 80% of the traffic, making customer acquisition costs extremely high for new entrants. In the past year, the number of short dramas has increased by 300%, but the total number of views has only increased by less than 50%, and the average exposure per unit of content is declining.

Secondly, the profit model is unhealthy. Currently, the main way for short dramas to generate revenue is through advertising, which involves paying for exposure and users. The production cost of a short drama may only be a few hundred thousand yuan, but the cost of advertising can be as high as millions or even tens of millions of yuan. When advertising stops, the users disappear, and there is no real brand building or user stickiness.

Third, the platforms are losing money. Whether it's long-form video platforms that broadcast short dramas or dedicated short drama apps, the vast majority are currently operating at a loss. In order to maintain growth, platforms are constantly squeezing the profit margins of producers, leading to a continuous decline in producers' gross profit margins, resulting in an unhealthy industry as a whole.

After briefly reviewing the report, Fang Chen got out of bed to wash up.

He knew in his heart that Xu Wen was right.

Data shows that short dramas are indeed not a good market segment.

The terms "red ocean," "expensive investment," and "platform losses" are not fabricated.

But the system's voice unexpectedly rang in my mind.

[One of the long-term mission side quests has been initiated. Host, please establish a film and television company as soon as possible and enter the short drama field.]

Fang Chen was somewhat surprised.

This task assignment is not in line with the system's style.

Previously, either the money was paid in advance, or the task objectives were rather vague.

This time, however, the specific tasks were clearly defined, but no reward was mentioned.

However, the system mentioned that this is a side quest of a long-term mission, which should correspond to the remake of Romance of the Three Kingdoms.

Fang Chen asked Xu Wen, "What if we make a high-quality production? Not one of those mass-produced, entertaining shows, but one that focuses on quality, like a mini-series, with each episode lasting ten or so minutes, totaling a dozen or so episodes, well-produced, attracting viewers with its content itself."

"The essence of this model is to use the quality of long-form dramas to create short-form drama content," Xu Wen quickly replied. "The advantage is that if it succeeds, the brand value is very high, and user loyalty is also strong. The disadvantages are high costs, slow return on investment, and a high probability of failure."

"Okay, I'll need you to do me a favor again in the near future and either start or acquire a film and television company."

Xu Wen didn't understand.

But Xu Wen did as instructed and quickly began contacting film and television industry bosses who were interested in making a move.

Starting a new company requires resources and connections, and the film and television industry is highly niche.

Acquisition is much easier.

After washing up and getting ready, Fang Chen called Zhao Xiaole.

Today we're going to continue taking him to play in Jiangcheng.

Zhao Xiaole's voice wasn't as playful as usual; it carried a hint of apology. "I have to make an emergency trip."

"What's wrong?"

"An old friend of my dad's is short-staffed for a project and wants me to go help out for a few days." Zhao Xiaole sighed. "It's a favor project; I can't refuse, and it wouldn't be good not to go."

"What exactly is it? Can I help?" Fang Chen asked.

Zhao Xiaole hesitated for a moment on the other end of the phone, seemingly considering his words.

"An old friend of my dad's, surnamed Wang, has been in the film and television industry for over 20 years. He used to make TV dramas, and later switched to making movies. He's made money and lost money. Last year, he started a new project, a commercial film. The project was approved, and the location was all chosen, but the investors suddenly withdrew their investment."

"A commercial film?"

"Yes, theatrical releases, not online movies," Zhao Xiaole said. "Uncle Wang has poured his entire fortune into it, and now there's a shortfall of about 20 million. He's approached several investors but hasn't been able to reach an agreement. My dad can't help either; he hasn't even found funding for his own long-running drama yet."

Fang Chen listened and remained silent for two seconds.

"You're going there this time just to help him with the work?"

"Yeah, there are few people in the crew right now, so we have to do all sorts of work. Uncle Wang and my dad have been friends for decades, and my dad said we can't just stand by and do nothing at a time like this."

"I'll go with you."

"Are you going too?"

"Let's go take a look and broaden our horizons," Fang Chen said casually. "Didn't you say this industry is a circle business? How will you know what's going on if you don't go in?"

Zhao Xiaole thought about it and did not object.

"Okay, I'll send you the address when I get there. You can come a day later if you want. I'll go over first and help you pack."

After hanging up the phone, Fang Chen sent Xu Wen another message: "I'm going away for a few days."

"Got it. Do you need me to come along?"

"Need not."

Fang Chen packed two changes of clothes and drove off.

The place Zhao Xiaole mentioned was a small city in a neighboring province. Fang Chen arrived the next afternoon.

Several dusty private cars were parked in the parking lot outside the office building.

Stepping inside, you'll find a spacious, open area with walls covered in storyboards, scene designs, and actor photos.

Several computer screens were still lit up at workstations, and a dozen or so other people were busy at work.

Zhao Xiaole was squatting on the ground helping to move prop boxes when he saw Fang Chen come in. He stood up and patted the dust off his pants.

"We've arrived? That was pretty quick."

"This place is quite big."

"What's the use of having so many people? Almost everyone's left." Zhao Xiaole gave a bitter smile. "There used to be over a hundred people, but after the investors withdrew their funding, most of them left. Now only a few die-hards are left to hold on."

Fang Chen looked around.

The storyboards on the wall have a style that leans towards commercial genre films. The action scenes are drawn very well, and the scene design drawings are also of high quality. It doesn't look like a shoddy project.

"This project has a good foundation," Fang Chen said.

"His foundation is good. Uncle Wang has been in this business for over 20 years, and his skills are unparalleled. The problem is that he's out of money. If he can only hold on for two more months, he won't be able to keep the last few people."

Zhao Xiaole led Fang Chen inside and pushed open a glass door covered with sticky notes.

"Uncle Wang, this is the friend I told you about, Fang Chen."

Behind the desk sat a man in his fifties with gray hair, wearing a faded dark jacket, and an ashtray in front of him piled high with cigarette butts.

He looked up, his eyes bloodshot, as if he hadn't slept well for days.

"Mr. Fang? Please have a seat."

Fang Chen sat down opposite him, and Zhao Xiaole pulled up a chair and sat down next to him.

Wang Zengping took out a pack of cigarettes from the drawer, pulled one out and handed it to Fang Chen, who waved it away.

He lit it himself, took a deep breath, and the smoke drifted between the two of them.

"Xiao Le told me about you, about your work in medicine and agriculture, a promising young man." Wang Zengping flicked his cigarette ash, his tone flat, without any intention of trying to get close. "You've come this time to see me?"

"Yes, I'd like to learn more about it," Fang Chen said. "I'm interested in the film and television industry, but I don't know much about it. I'd like to see more."

Wang Zengping nodded without saying anything.

Zhao Xiaole chimed in from the side, "Uncle Wang, Brother Chen isn't the kind of person who just talks the talk but doesn't walk the walk; he really wants to get things done."

Wang Zengping glanced at Zhao Xiaole, then at Fang Chen, remained silent for a few seconds, and then stood up.

"Come on, let me show you around."