The commercial reach of China’s most popular entertainment programs and their stars is long. 2018’s TV series, Produce 101 China, is a case in point. The combination of reality TV and audience participation that has been so successful overseas and in a range of formats is proving just as successful in China. A weekly show premiering in April of this year, Produce 101 China follows 101 female candidates as they audition for a new girl pop group. Each week their numbers are whittled down through an audience vote until just 11 successful candidates are left who can go on to form a new girl pop group.

Produce 101 China

Following its debut on video website, Tencent Video, Produce 101 China quickly went viral and rocketed to the top of China’s internet viewership rankings. The show’s single-day viewership numbers racked up audiences of 150–200 million on Saturdays and Sundays between April 21 and June 23, rising to a mammoth viewership of 460 million who tuned in to June’s finale.

Finding enough new faces to meet this kind of entertainment appetite is not straightforward. The numerous Chinese talent management agencies that have sprung up tend to be small operations and their industry remains largely fragmented, despite the presence of some larger overseas players. The shortage of talent facing the entertainment industry is being exacerbated by growing demand for new faces to host variety shows on online video websites. These shows are overtaking the traditional model of films, satellite TV and music recording, replacing them with a wider range of channels and interactive and offline promotional activities.

6 out of the top 10 variety shows on the Internet were produced by online video platforms

Recent years have seen online movies, dramas, variety shows and other online channels become the new entertainment choice for the viewing public. In June 2018, 6 out of the top 10 variety shows on the Internet were produced by online video platforms, such as Football Commentary Conference and Produce 101 China. This is encouraging user traffic to gradually migrate to leading platforms Tencent Video, iQiyi and YOKU.

Highly competitive and fragmented industry

In a highly competitive and fragmented industry, establishing a bona fide star can take years and even then there is no guarantee of success. But the potential rewards can be great. According to data from Entgroup, the talent management industry in China could exceed Rmb100bn by 2020. And every talent management agency is hoping that they will be the ones to spot the next Meiqi Meng, Xukun Cai or Ju Wang, major stars in China who themselves were graduates of shows like Produce 101 China and Idol Producer.

For more information, refer to our report Investment opportunities in the artist management sector published in August 2018.