August 19, 2026
We will elaborate a little more deeply on the news briefly covered in the newsletter.
NEWS #1China's AI Short Drama Market Shifts from 'Production' to 'IP Acquisition'
In the first half of this year, 221,900 AI short dramas and animated series were released in China, but only 1.3% were viewed over 50 million times, and 0.48% over 100 million times. More than 60% of the top 30 most popular works were IPs based on web novels, and one of them was repeatedly produced across more than 30 versions and up to Season 6. China's major web novel company, 'Jianzhong,' is opening up its 80,000 IPs to external parties, offering a guaranteed payment of up to 150,000 yuan and a 50-50 profit-sharing structure.
As AI lowers production barriers, the competitiveness derived from "how quickly and in large quantities" diminishes. Conversely, stories with characters and conflict structures already proven through proprietary data actually increase in value because they reduce trial and error. Furthermore, given that a single IP can be repeatedly expanded across multiple formats, seasons, and languages, its nature is shifting from "one-time use content" to a "continuously revenue-generating asset."
This trend is also leading to the actual commercialization of characters. The main characters of the AI short drama "Deep Love That Invaded My Remaining Life" have secured a fandom by creating personal accounts on Douyin and Hongguo. Among them, the bracelet worn by the male lead in the drama sold over 10,000 units, exceeding 1 million yuan in sales. This is an example demonstrating that characters in AI content can evolve beyond simple figures into "AI idols" that sell their own merchandise.
IP holderIf your story or characters have already garnered a response, view and manage them as assets that can be expanded across multiple formats and seasons.
Brand PartnerWhen reviewing collaboration IP, you can reduce risk by checking whether the IP has been proven to be well-received in other formats and markets.
NEWS #2 Disney places bet on short-form creators instead of Mickey characters
Instead of announcing new characters at the U.S. fan event D23, Disney stated that "the next legend will come from short-form," declaring that it would use the creator ecosystem as a stage for characters to grow. By expanding its partnership with TikTok and introducing the short-form feed "Verts" to Disney+, it is bringing creators' derivative works and fan communities into the platform. This is a strategy designed not to replace feature-length content, but to allow short-form to serve as an entry point for discovering new characters.
The method of developing a finished character over several years and releasing it to the market all at once carries a high risk of failure because the reaction cannot be gauged in advance. That is why Disney used the short-form ecosystem, where creators can experiment freely, as a 'testing ground' for its characters. They determined that it is much safer to first identify which settings and moments resonate with the audience before expanding the worldview.
Creator John Yushai, who attended the event, described this trend as "an era where creator content made in a few hours coexists with IP produced over two or three years." Disney executive Erin Teague also explained, "Next-generation fans want to discover stories, project themselves onto them, and participate actively, rather than passively watching content while leaning on the couch." In other words, short-form content is not merely promotion; it is closer to a parallel track that generates real-time fan engagement, separate from the production of full-length content that takes a long time to complete.
IP holderBefore finalizing, release short scenes to check the reaction and expand the worldview based on the elements that receive a positive response.
Brand PartnerWhen choosing collaboration IPs, also keep an eye on characters that build up a rapid response in short-form content.
NEWS #3 The Indonesian IP Industry is on the Rise! What Does IP Need Now?
In Indonesia, creating merchandise, collaborations, and licensing based on characters is becoming more important than simply creating high-quality characters. The government is also shifting its support direction to align with this trend. The Indonesian webtoon character 'Si Juki' officially collaborated with SpongeBob to produce books and release merchandise together. This applies not only to overseas IPs but also to domestic ones. Korean IPs like Pororo and Tayo are not merely selling broadcasting rights; they are actively pursuing localization by establishing local subsidiaries and personally overseeing everything from product design to pricing. This serves as an example demonstrating that selling content is a different matter from helping characters take root in the local market.
Furthermore, at the 'Jakarta IP Market' held in Jakarta in 2026, not only IP-holding companies but also manufacturers, distributors, and investors participated to discuss licensing consultations, joint product development, and investment cooperation. The Indonesian government is also discussing cooperation with the major shopping mall chain Lippo Malls Indonesia, aiming to utilize commercial spaces like shopping malls as distribution platforms where IP can reach consumers. This signifies that, separate from content creation, the infrastructure for actually trading and distributing IP is just beginning to be established.
IP holderLocal experts advised that rather than immediately demanding a large contract just because a brand is famous, it is more effective to build trust by working together on small projects first. If you are considering expanding overseas, please prioritize whether you can continue working with this partner over the contract terms.
NEWS #4 The 'No. 1' Collaboration Keeps Changing! Character IP Trends Seen Through Data
An analysis of collaboration mentions for six core IPs, including Crayon Shin-chan, Sanrio, and Pokémon, from 2024 to July of this year revealed a total of over 1.3 million. Interestingly, the top spot changed every year. While Crayon Shin-chan led in 2024 and Sanrio in 2025, Pokémon took the lead this year as it celebrated its 30th anniversary. Among domestic characters, Teenieping garnered attention through unique collaborations such as those with Hyundai Motor and the Kia Tigers, resulting in a 35.8% increase in mentions over the past year. This suggests that rankings are not fixed simply because a character is a major IP; rather, reactions surge when there is a compelling reason for the character to become a hot topic.
As the buzz surrounding the game grows, consumer response is also generally improving. The rate of negative reactions has steadily decreased from 6.5% to 5.2%. However, as the popularity increased, the shadows also deepened. While the process of obtaining characters—such as open runs and random draws—raises the buzz, it has also been identified as a factor contributing to consumer fatigue.
IP holderExcessive methods of acquiring merchandise, such as open runs and random draws, can cause fatigue among consumers.
Brand PartnerCollaborations that cannot explain 'why they collaborated with this character' only leave a sense of aversion.
NEWS #5 From Teletubbies to Robot Taekwon V, 'retro characters' are back.
Starfield Anseong hosted the '6th Balloon Festival' until the 25th, showcasing Teletubbies—a character familiar to those born in the 1990s—through giant balloons and experience zones. Equipped with an ice cream game zone and a merchandise shop featuring 172 different items, it stimulated both the nostalgia of the parents' generation and the joy of the children's generation. Additionally, Hana Bank partnered with 'Robot Taekwon V,' which is celebrating its 50th anniversary, to open a dedicated commemorative hall. This demonstrates that regardless of industry, long-standing characters are being utilized as a motivation for visits that transcend generations.
Although the industries differ, both cases share a commonality: a single retro character simultaneously evoked nostalgia for the parents' generation and a sense of novelty for the children's generation, thereby creating a motivation to visit. While new characters must build recognition from scratch, a character already established in the memories of a specific generation triggers feelings of nostalgia simply by its existence.
Brand PartnerPlease be sure to check the following three points before collaborating with retro IP.
Targeting Generations: Select characters that simultaneously evoke nostalgia for the parents' generation and the children's generation's first experiences.
Check Timing: Utilize commemorative milestones such as the 30th or 50th anniversary as collaboration points.
Preserving the original form: The nostalgic effect is maximized when the original image is preserved rather than through excessive reinterpretation.
NEWS #6 The convenience store industry has started a 'war of reasons'.
With the number of convenience store outlets decreasing for the first time in 36 years, the industry is shifting its strategy toward increasing sales at existing stores rather than opening new ones. CU has increased its character collaboration products sevenfold (to 370 types) over the past four years, while GS25 operates Gacha Zones, and 7-Eleven and Emart24 run K-pop and beauty combined stores and region-specialized stores, respectively, creating reasons for customers to visit. However, it remains to be seen whether the success of these highly話題-generating experimental stores will directly translate into profitability for stores nationwide.
The figures released so far are mostly based on results from just one or two flagship stores, such as those in Myeongdong or Seongsu. Since it has not yet been verified whether these results can be replicated across thousands of stores nationwide, when evaluating collaborations, you must consider not only the buzz but also whether the structure encourages repeat visits at regular locations.
IP holderAs the categories handled by convenience stores have expanded, try proposing character concepts that suit the store and situation.
Brand PartnerDifferentiate between the performance of flagship stores and the profitability of regular stores, and prioritize collaborations that combine space and experience over exclusive merchandise.
How about these characters?
