Summary of Key Points
The four variety shows directed by Xiong Zhihao (including "Open for Business") have accumulated a debt of nearly 28 million yuan, involving employee salaries and supplier fees. This is not an accident but the result of his long-term practice of funding projects in advance only to later fail to repay them. Additionally, over 60% of variety shows in the industry are facing financial shortages, and 40% have unpaid wages, highlighting the high risks associated with self-produced content, difficulties in attracting sponsors, and irregular salary settlements. These issues reflect a broader crisis within the industry, characterized by outdated content, declining viewership, and shifting brand preferences.
Detailed Analysis
1. The Director's Repeated Pattern: Not an Accident, but a Habit of Borrowing to Cover Shortfalls
Xiong Zhihao's failure to pay wages is not a one-off; it has happened with each of his four variety shows. His common tactic is to show suppliers "half-true" contracts (for example, only the first and last pages of the contract, claiming there is a prepayment of tens of millions, when in reality, the payment is distributed after the show airs), forcing them to fund the production on their own. He has even borrowed money from artists and fans to cover expenses. The debt details show that more than 14 million yuan is owed for "100% Singer: Battle Season," as well as company loans and employee salaries, indicating that he has been using funds from new projects to cover the gaps left by older ones. Now he claims to prioritize debt repayment but fails to respond even to basic inquiries, and the so-called "tens of millions in revenue" are actually only a little over 1 million yuan, which is far from enough to settle the debts.
2. Two Production Models: "Sure-Success" vs. "High-Risk"
There are two main approaches in the variety show industry:
- Platform-Led: Platforms like iQiyi or Tencent provide funding and find production companies to create content. In this model, production companies earn a fixed fee with lower profits but no risk of unpaid wages.
- Self-Produced Projects: Production companies initiate projects, seek investment, and then try to get them aired on platforms. If they succeed in attracting sponsors, the returns can be substantial; however, if they fail to secure funding, they must bear all the initial costs. Xiong Zhihao's projects are entirely self-produced, and since he hasn't secured any sponsors, he has relied on borrowing to fund them, leading to a collapse when his financial resources run out.
3. Increasing Difficulty in Attracting Sponsors
The situation for attracting sponsors has worsened significantly: The number of sponsorships decreased by 14% in the first quarter of 2025, with online variety shows experiencing a even more dramatic drop of 16%. In the past, top-tier variety shows could fetch sponsorship fees of 50 million yuan; now, S-grade projects can be acquired for as little as 20 million yuan, or some may even be funded with just 1 million yuan. The reason? Brands have become more discerning: They invest in variety shows to gain exposure but now prioritize whether the content can drive sales. The conversion process for variety shows is much longer (investing in sponsorship does not guarantee a significant increase in sales), whereas short videos and live streaming have immediate commercial benefits, drawing brands away.
4. The Hardest Hit: Frontline Workers
The salary settlement process in the variety show industry is particularly problematic:
- Employees and suppliers often receive only 10%-30% of the total fee upfront and are paid the remaining amount after the project ends, meaning they may have to wait for months or longer to get their full payment.
- Many positions in the industry are outsourced, creating a chain of responsibility that extends from platforms to production companies to external teams. If a production company goes bankrupt, the wages of frontline workers and small suppliers become uncollectible.
5. The Root of the Industry's Crisis: Outdated Content and Lost Viewers
The problems in the variety show industry are not just financial but also related to content quality and audience demand:
- Outdated Content: Repeated formats (such as the seventh season of "Sister Lang") have lost viewers' interest, and new shows lack innovation.
- Competitive Pressure: Short videos, web dramas, live streaming, and games have stolen a large portion of the audience's time, resulting in a 30% decline in variety show viewership.
- Vicious Cycle: Fewer viewers lead to harder sponsorship acquisition, tighter budgets, lower quality of content, and even fewer viewers. Self-produced shows without platform support are most vulnerable to this cycle.
Conclusion
For the variety show industry to emerge from this crisis, it cannot rely on artists covering the costs on their own; creative and engaging content is needed to attract viewers and persuade brands to invest. After all, only with a loyal audience and sufficient funding can the issue of unpaid wages be effectively resolved.