Changpeng Wan
On August 18, 2025, China’s film and television sector experienced a remarkable market upswing, with stocks like Huashi Media (300426.SZ), Huace Film & TV (300133.SZ), Ciwen Media (002343.SZ), Jishi Media (601929.SH), and H&R Century (000892.SZ) hitting the daily limit-up. This surge was directly fueled by the widely circulated ‘NRTA 21 Rules’—a new set of guidelines from the National Radio and Television Administration that promises to revitalize a struggling industry by loosening long-standing creative constraints. For an industry battered by platform cutbacks, shrinking production volumes, and capital flight, these rules are being hailed as nothing short of a lifeline.
Understanding the NRTA 21 Rules
The core of the excitement stems from several key deregulations introduced in the NRTA 21 Rules. The document, officially titled ‘Several Measures on Television Drama Creation,’ addresses long-standing industry grievances and aims to stimulate high-quality content production.
Key Policy Changes
The most impactful changes include: – Abolishing the 40-episode cap for series, allowing storytellers more narrative freedom. – Removing the mandatory one-year gap between seasons of a series, enabling faster follow-ups to successful shows. – Easing strict quotas on the broadcast ratio of costume and historical dramas. – Encouraging network-TV synchronization and multi-platform broadcasting (‘一剧多星’). – Lifting country-of-origin restrictions on adapting outstanding foreign intellectual properties. These changes represent a significant philosophical shift from strict control to managed encouragement, aiming to combat a severe multi-year downturn.
Immediate Market Reaction and Financial Impact
The financial markets responded with overwhelming positivity. The cultural media index rose by 3.11%, making it one of the top-performing sectors for the day. Net capital inflow into the板块 exceeded 10.257 billion yuan, a clear signal of renewed investor confidence. This bullish sentiment wasn’t limited to a few players; it was a sector-wide rally. The timing of this policy is critical. The industry has been caught in a vicious cycle. As veteran industry insider Li Neng (a pseudonym) explained, negative signals had become the norm: ‘The series industry hasn’t had good news for a long time; usually, what comes are negative signals like platforms tightening their belts and demands for shorter episode counts.’
A Decade of Decline
The data paints a stark picture of this decline: – In 2014, 429 series received distribution licenses. By 2024, that number had plummeted 73% to just 115. – A report on China’s series industry showed a steady drop in total productions (including online dramas), from 752 in 2019 to 281 in 2024. Li Jingsheng, Vice President of the China Radio and Television Association, had previously warned that the ecosystem for long-form series had hit a bottleneck, with the emphasis on ‘quality over quantity’ ironically leading to a dangerous reduction in overall output that threatened the industry’s very foundation.
Confronting the Short-Form Video Threat
A major challenge catalyzing the NRTA 21 Rules is the meteoric rise of micro-short dramas. In 2024, the user base for these short-form videos reached 662 million, with a半年 growth rate of 14.8%. Perhaps more tellingly, the average daily time spent per user on dedicated short drama apps increased from 90 to 101 minutes, rivaling that of instant messaging platforms. This shift in consumer behavior forced major long-form video platforms to adapt. As Li Neng pointed out, ‘Over the past year or so, major long-form video platforms have been focusing on short dramas. iQiyi has invested a lot of energy, and Tencent Video plans to transfer 10% to 20% of its long-form series resources to short dramas.’ The NRTA 21 Rules are a direct countermeasure to rebalance this landscape and ensure long-form narrative content remains viable and valuable.
Unlocking Creative Potential and IP Development
Beyond the immediate stock market jump, the long-term implications for creative content are profound. The NRTA 21 Rules are designed to empower creators and unlock the full potential of valuable intellectual property. Zhao Bin, Chairman and General Manager of Chengdu Tianfu Kuanzhai Culture Communication Co., highlighted the benefit for seasonal series: ‘Not having to wait too long between seasons will aid the continuous creation of good IP.’ He observed that long gaps cause audience momentum to fade, hurting the performance of subsequent seasons. Li Neng provided a concrete example: ‘Lost You Forever was forced to split into two seasons because of episode number rules. The first season performed very well, but the second season, which aired after a year’s gap, was not as ideal.’ The new rules mitigate this issue, allowing for more coherent and commercially sustainable development of major franchises.
Addressing the ‘Filler Content’ Concern
A natural concern with lifting the 40-episode cap is the potential return of ‘filler content’—stretched-out narratives designed to maximize episode count and revenue. However, industry experts are optimistic this won’t happen. Li Neng argued that the market dynamics have changed: ‘Originally, ‘filler content’ was a product of an extremely prosperous market. Now, platform budgets and investment per series are not as疯狂 as before, capital is more rational, and platforms will be very strict in controlling content.’ An industry source close to major platforms confirmed this, noting, ”Filler content’ often causes platforms to lose money. Now that video platforms like iQiyi, Youku, and Tencent Video are all pursuing profitability, they are unlikely to allow ‘filler content’ to continue broadcasting.’ The focus, instead, will be on quality and audience retention.
From Survival to Revival: Capital Returns and Production Accelerates
The ultimate goal of the NRTA 21 Rules is to revitalize the entire long-form series market. The policy is already having a tangible effect on the ground, spurring action after a prolonged period of stagnation. Zhao Bin noted that measures like ‘shortening the review cycle’ directly translate to lower costs and improved capital efficiency for producers and platforms. This efficiency is key to attracting investment. ‘The introduction of the policy will have a major impact on the upstream and downstream markets, especially as capital begins to ‘return’ its focus,’ he said. Li Neng emphasized how the drain of resources to short-form content was creating a恶性循环 for long-form series. He believes clauses promoting pilot programs for mid-roll advertising in series and optimizing collaborative review mechanisms will help attract funding back to long-form projects. This renewed confidence is triggering a wave of activity. Zhao Bin revealed his company is accelerating the launch of a new series, ‘Born with Wings,’ deciding to start filming this very week. ‘This is not a sudden policy; it is the ‘timely rain’ we have been waiting for. I understand that many film and television projects are accelerating their start-up.’ He reported seeing this optimism firsthand in Hengdian, a major filming hub: ‘I just arrived in Hengdian today to look at new projects and can feel a clear change compared to two weeks ago. Just taking restaurant bookings as an example, the热度 is much stronger now.’
The Road Ahead for China’s Film and TV Sector
The introduction of the NRTA 21 Rules marks a pivotal moment for China’s creative industry. It represents a strategic pivot by regulators to use targeted deregulation to cure specific market ailments—shrinking production, capital flight, and the stifling of creative ambition. The immediate stock market euphoria is just the first sign of a potential broader recovery. The true success of these measures will be judged by the quality and diversity of content that emerges over the next 12-24 months. Will producers leverage their new freedom to create epic, compelling narratives, or will old habits resurface? Can the industry attract sustainable investment rather than speculative capital? The collaboration between regulators, platforms, and production companies will be crucial. For stakeholders across the ecosystem—from investors and executives to directors and writers—the message is clear: a window of opportunity has opened. The challenge now is to execute, innovate, and prove that long-form storytelling still holds immense value in the modern media landscape. The policy provides the tools; the industry must now build the future.
