Summary of Key Points
Overseas manga series have become a new entrepreneurial opportunity driven by AI technology, internet traffic, and the global market, attracting entrepreneurs from different generations such as Arlo (from Shenzhen, responsible for production and distribution), Zhou Zhou (from Shanghai, focused on marketing and operations), and Yao Jie (from Chengdu, involved in production and training). In this rapidly expanding industry, they have experienced both early benefits (such as high-value orders and quick returns on investment) and numerous challenges (including price competition, client non-payment, unclear acceptance standards, and script fraud). Although the market is still in its infancy, it changes extremely quickly, requiring entrepreneurs to adapt their strategies flexibly (for example, shifting from production to distribution or providing training services to earn a profit margin). The relatively open rules and larger potential of the overseas market also highlight its long-term prospects.
Why Have Overseas Manga Series Become Such an Attractive Venture for Young Entrepreneurs?
In short, there are three main attractions: a favorable business environment, low entry barriers, and a vast market:
- AI reduces barriers to entry: Arlo mentioned that even beginners can produce simple manga series after just ten days of training, without requiring a professional film or television background (he comes from an engineering background). AI tools like Seedance have increased production efficiency while keeping labor costs under control.
- Lagging benefits in the overseas market: Content that was outdated in China six months ago can still be profitable overseas. TikTok allows Chinese companies to directly target global audiences with automatic language translation, eliminating the need for additional qualifications.
- Relatively open environment: Zhou Zhou particularly appreciates the clarity of overseas platforms' rules—these platforms explicitly state what is allowed (e.g., no racial or religious offenses) and do not make sudden changes, unlike some domestic platforms.
- Large market potential: While China's short-form video market is only worth a few hundred million yuan, the overseas market has 5.5 billion users, with many untapped areas (e.g., Southeast Asia, which is suitable for free models).
What Challenges Have Entrepreneurs Faced?
Despite the rapid growth of the industry, challenges outweigh opportunities:
- Fierce price competition: The cost of producing manga series has dropped significantly; for example, an expensive order that Arlo received in April was now priced between 400 and 800 yuan per minute. Yao Jie noted that since Seedance 2.0 became more widespread, overseas orders have decreased from 1,000 to 500 yuan per minute, but labor costs remain the same.
- Common client non-payment: Clients often fail to pay, citing issues with quality or policy changes; entrepreneurs must resort to legal actions or accept losses.
- Unclear acceptance standards: Middle parties may set high standards (e.g., requiring specific pupil and microexpression details) without providing clear guidance, leading to significant losses.
- Script fraud: Trial episodes are often free, but clients may sell them or use them as templates, leaving entrepreneurs with no compensation for their work.
Three Typical Business Models and Their Profitability
Different entrepreneurs have chosen different approaches, resulting in varying levels of success:
- Production and distribution (Arlo): Initially focused on production to quickly recoup costs, Arlo later shifted to distribution, earning a profit from sharing revenue with platforms like TikTok (20 US dollars per 10,000 views of their series).
- Marketing and platform management (Zhou Zhou): Instead of creating content, they focus on promoting it through platforms like Meta and TikTok and managing YouTube distribution. While some popular series can generate 400,000 US dollars in a day, this requires a large audience base.
- Production and training (Yao Jie): Production profits are low (300 yuan per minute for government projects), but training services are more profitable, with customers paying over 100,000 yuan each. They also offer free training to students, which helps reduce labor costs.
How Different Are the Overseas and Domestic Markets?
The two markets operate under very different rules:
- Policies: Overseas platforms have clear guidelines; domestic platforms often make sudden changes (e.g., the sudden removal of a large number of series from the platform).
- User behavior: Overseas content is shorter and more affordable, while domestic content is longer and more expensive. Overseas episodes typically last 20–40 minutes, compared to 120 minutes in China.
- Platform dominance: The Chinese market is dominated by a few companies (e.g., ByteDance/Tomato), while overseas markets are more competitive with multiple platforms like TikTok, Meta, and YouTube.
- Success criteria: Domestic success relies on viral hits, while overseas success requires high production volumes. A single popular series in China may generate millions, but overseas, a large number of episodes must be produced to be profitable.
Is the Industry Still Promising for the Future?
Entrepreneurs are generally optimistic, but they need to adapt constantly:
- Standardization is on the horizon: Arlo believes the industry will become more regulated, reducing challenges for entrepreneurs.
- AI as a competitive advantage: AI allows smaller teams to compete with larger companies on an equal footing, focusing on organizational capabilities (e.g., companies like Jiuzhou Huahua investing in copyright to quickly enter the manga series market).
- A mix of free and paid models is likely: Zhou Zhou predicts a combination of free and paid services in the future.
- Derivative businesses are more profitable: Services like training and cultural projects (e.g., using manga series for museum education) offer more stable sources of revenue.
In summary, overseas manga series are not an easy opportunity for quick profits, but with adaptability and avoidance of common pitfalls, there are still many opportunities in this growing global market.