ByteDance's Free Video App Hongguo Defends VIP Paywall

Hongguo Short Drama, ByteDance's wildly popular free video streaming app, has responded to user backlash over the appearance of VIP paywalled content, clarifying that the feature is not new and applies to only a tiny fraction of titles. The statement comes after users noticed a 'VIP' tag on certain films, sparking concerns the platform was shifting away from its signature free model.

What Triggered the Controversy

Users recently discovered that searching for the film Youth Memories (少年往事) on the Hongguo app displayed a 'VIP' badge on its cover. After watching a 6-minute preview, the app prompted users to purchase a membership to continue — a jarring experience on a platform built entirely around free, ad-supported viewing.

The discovery quickly spread across Chinese social media, fueling speculation that Hongguo was quietly introducing a paid subscription tier. For a platform that attracted users with the promise of completely free content, even a small paywall felt like a betrayal to many.

Hongguo's Official Response

A company spokesperson addressed the rumors on May 3, telling Red Star Capital Bureau that the VIP restriction exists solely to comply with copyright holder requirements. The spokesperson emphasized several key points:

• The VIP setting has existed since the platform's launch and is not a recent addition
• It applies to an 'extremely small amount' of content where rights holders specifically demand it
• The feature was introduced to expand content diversity and meet different user needs
• The platform's core model of free viewing plus ad revenue sharing remains unchanged

Hongguo's current VIP pricing tiers are set at:

• 7-day membership: ¥8 (~$1.10)
• 1-month membership: ¥30 (~$4.10)
• 12-month membership: ¥260 (~$35.60)

No promotional discounts are currently available.

A Free Model That Conquered China's Streaming Market

Hongguo Short Drama launched in August 2023 under ByteDance's Douyin Group with a disruptive business model: users watch short dramas for free, view ads between episodes, earn 'gold coins,' and can even redeem those coins for cash. The platform monetizes through ad revenue sharing with content creators.

The strategy has proven extraordinarily effective. According to QuestMobile data, Hongguo reached approximately 236 million monthly active users by September 2025 — surpassing established players like Bilibili and Youku in less than 2 years since launch.

That meteoric growth makes any hint of a paywall strategy a sensitive topic. The platform's entire value proposition rests on being the antithesis of subscription-heavy competitors like iQiyi, Tencent Video, and Youku.

Why This Matters Beyond China

Hongguo's situation highlights a tension familiar to Western audiences: the sustainability of ad-supported free models versus the economics of content licensing. Platforms like YouTube, Tubi, and Pluto TV in the West face similar pressures as content owners demand higher licensing fees or premium placement for their titles.