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How's the script kill going?

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2024-11-27


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Escape rooms and script-killing games have gained popularity among consumers, primarily young people, due to their easy and enjoyable gameplay, relatively low barrier to entry, diverse consumption options, and social atmosphere. Currently, China's script entertainment industry is undergoing innovation, upgrading, and structural adjustments. While experiencing growth in overall transaction volume and average order value, it is also facing adjustments in its supply and demand structure. The script entertainment industry continues to attract consumers, with plot, scene, and personnel being core elements of the product experience that consumers focus on. Online platforms have become the primary channel for consumers to obtain information. The script entertainment industry is showing distinct trends, including an expanding consumer base, accelerated technology application, enhanced immersive experiences, growth in sinking markets, and deeper integration with the tourism industry. To promote the high-quality development of the script entertainment industry, regulation can be focused and flexible, focusing on combating piracy and infringement. Various entities within the industry should strengthen industry self-governance and multi-party governance, promoting industry transformation and upgrading through new technologies and new scenarios.


Author | Zhu Ge, Liu Jiahao, Zhang Lin
Editor | Yang Ming
Editor in charge | Jing Xiangyuan
Source |
Meituan Research Institute

According to the "Provisional Regulations on the Management of Script Entertainment" (Draft for Comments) released by the Ministry of Culture and Tourism in 2023, script entertainment refers to "cultural and entertainment activities conducted for profit by operating units through on-site organization of consumers playing roles in scripts or solving puzzles in specific scenarios," mainly including script-killing and escape room games. In recent years, the script entertainment industry has developed rapidly, gaining popularity among young people and becoming an important industry driving local consumption and the development of upstream and downstream industry chains. Based on past data and Meituan transaction data, the national script entertainment consumption market size in 2023 is estimated to be approximately 19.5 billion yuan①, with the script-killing market size at approximately 14.5 billion yuan and the escape room market size at approximately 5 billion yuan.


① This data represents the consumption market size; the overall market size, including upstream, midstream, and downstream transactions, is approximately 30-50 billion yuan.


Since 2022, the script entertainment industry has entered a period of innovation, upgrading, and structural adjustment. Based on traditional store-based script-killing and escape room games, the script entertainment industry has begun to integrate with the tourism and cultural industries, applying more advanced technologies and emphasizing "immersive" experiences, becoming a new consumption hotspot. In the future, the script entertainment industry will face both challenges and opportunities. It requires multi-party governance by regulatory authorities, industry associations, online platforms, and various entities in the industry's upstream and downstream to improve the regulatory system, expand consumption scenarios, and jointly promote the high-quality development of the industry.



Development of the Script Entertainment Industry

Overall Characteristics



(1) Annual Transaction Volume Maintains Growth

According to Meituan data, in 2023, Meituan's script-killing transaction volume increased by 9.2% year-on-year; escape room transaction volume increased by 32.6% year-on-year (see Figure 1). From a quarterly perspective, due to the gradual market recovery in the first three quarters and the peak season in the summer, the transaction volume of both script-killing and escape room games steadily increased in the first three quarters, reaching its peak in the third quarter. Affected by the industry's off-season in autumn and winter, the transaction volume in the fourth quarter decreased compared to the third quarter, also showing that the "revenge spending" after the epidemic has basically ended, and the market growth rate has returned to a stable range. According to Meituan Research Institute's interviews with merchants, the consumer group of the script entertainment industry is gradually stabilizing, but the proportion of deep and loyal players is increasing, pushing the industry into a period of innovation, upgrading, and structural adjustment.



Figure 1 Transaction Volume of the Script Entertainment Industry in 2022-2023

Data Source: Meituan Research Institute



(2) Average Order Value Increased, Supply-Side Structural Adjustment

In 2023, the average order value of the script entertainment industry increased. Meituan's script-killing average order value increased by 28.1% year-on-year, and the escape room average order value increased by 3.7% year-on-year. The number of escape room orders increased by 27.9% year-on-year, and the number of users increased by 33.5%, indicating that the user group still has considerable growth potential. The growth of script-killing orders and user groups slowed down, but the average order value still increased significantly. According to Meituan Research Institute's interviews with script-killing merchants, new players are more sensitive to prices, while loyal players are willing to pay higher prices for better game experiences. The stronger willingness to pay of this group of users may have driven the increase in the average order value of script-killing games.


On the supply side, in 2023, script entertainment industry merchants underwent structural adjustments, with some merchants exiting the market due to competition, resulting in a decrease in the number of merchants. During the epidemic, due to restrictions on consumers' travel to other places, the script entertainment industry, based on local consumption venues, became popular and expanded rapidly during the epidemic, attracting many entrepreneurs to enter the industry. However, after the epidemic, tourism and outdoor activities were no longer restricted, and consumers had many more entertainment options, impacting the script entertainment industry and leading to the exit of some merchants. However, the high-quality merchants that survived this process demonstrated greater resilience.


In terms of geographical distribution, there are more script entertainment industry merchants in first- and second-tier cities. Among them, Shanghai and Beijing have more than 1,000 script entertainment merchants, ranking first (see Figure 2). Compared with 2022, in 2023, the number of script-killing and escape room merchants in Shanghai surpassed Beijing, ranking first nationwide. In addition, cities such as Chengdu, Wuhan, Hangzhou, and Chongqing, which have relatively prosperous economies, a large young population, and rapid cultural industry development, also have a large number of script entertainment stores, ranking in the second tier.



Figure 2 Top Ten Cities with the Most Script Entertainment Merchants

Data Source: Meituan Research Institute



Script Entertainment Industry

Consumer Insights



In August-September 2024, Meituan Research Institute conducted a questionnaire survey of active users of script entertainment consumption on the Meituan platform (users who have consumed script-killing or escape room games in the past six months). A total of 693 questionnaires were collected, including 316 male users and 377 female users. The proportion of users aged 18-40 was 71.7%, which is basically consistent with the overall gender and age structure of the platform users. Based on the questionnaire survey data, this section analyzes consumers' behavior and preferences and summarizes several major development trends in current script entertainment consumption.


(1) Nearly Half of Surveyed Users Increased Consumption Frequency and Interest in Script Entertainment

Among users who participated in the survey, nearly half of them increased their frequency of script-based entertainment consumption, with increased interest in script-based entertainment being the primary reason for their higher consumption frequency. Questionnaire data shows that 44.1% of Live Action Role Play (LARP) users and 41.6% of escape room users have recently increased their frequency of script-based entertainment consumption compared to previous years (see Figure 3), which is higher than the proportion of users whose consumption frequency decreased. This may be because the proportion of loyal players among the surveyed users is higher. Among the surveyed users with increased consumption frequency, 64.9% of LARP users stated that their interest in LARP increased, and 71.2% of escape room users stated that their interest in escape rooms increased (see Figure 4). It can be seen that the entertainment forms of LARP and escape rooms themselves have continuous appeal to consumers, and this is the primary reason for the increased consumption frequency among surveyed users. At the same time, a considerable number of users also experienced decreased consumption frequency, with the primary reason being their inability to find suitable companions to participate, followed by a diminished interest in script-based entertainment (see Figure 5).




Figure 3 Changes in Consumption Frequency of Script-Based Entertainment Industry Users in the Past Year

Data Source: Meituan Questionnaire Survey


Figure 4 Reasons for Increased Consumption Frequency Among Script-Based Entertainment Industry Users

Data Source: Meituan Questionnaire Survey



Figure 5 Reasons for Decreased Consumption Frequency Among Script-Based Entertainment Industry Users

Data Source: Meituan Questionnaire Survey



(II) LARP Users Most Concerned with DM and Script, Escape Room Users Most Concerned with Plot and Setting

In script-based entertainment consumption, numerous factors such as plot, staff, setting, price, and merchant service attitude can influence consumers' choice of merchants, but the importance of different factors varies. The survey questionnaire shows that the two most important factors for LARP users are the professionalism of the DM (Game Master) and script quality (see Figure 6). For escape room users, the most important factors are plot design and scene arrangement (see Figure 7). It can be seen that elements directly affecting the gameplay experience, such as plot, setting, and NPC/DM staff, remain the focus of most script-based entertainment industry users, and product experience is the core concern of script-based entertainment consumers.



Figure 6 Factors LARP Users Consider When Choosing a Venue

Data Source: Meituan Questionnaire Survey



Figure 7 Factors Escape Room Users Consider When Choosing a Venue

Data Source: Meituan Questionnaire Survey



(III) Online Platforms Become the Main Channel for Consumers to Obtain Information

The script-based entertainment industry experiences rapid information updates, with new themes, gameplay, venues, and promotions needing to be disseminated to users through online platforms or offline channels. The survey questionnaire shows that Meituan and Dianping, owing to their years of deep cultivation and continuous penetration in the script-based entertainment industry, have become the main platforms for consumers to learn about script-based entertainment information. Meituan and Dianping Apps are the primary channels for escape room users to obtain relevant information, and among LARP users, they are second only to friend recommendations as an offline channel (see Figure 8). In addition, a number of vertical apps have emerged in the LARP field, supporting online LARP or allowing evaluations of offline LARP experiences, and these are gradually becoming important information channels.



Figure 8 Channels for Consumers to Learn About the Script-Based Entertainment Industry

Data Source: Meituan Questionnaire Survey



(IV) Matchmaking Feature Popular, Expanding Users' Social Circles

A LARP or escape room typically requires 4 to 8 people to participate together, suitable for gatherings, team building, and other scenarios. However, this requirement also limits consumers with fewer companions. Joining a group with strangers for consumption has become a rigid demand for script-based entertainment consumers, and many consumers also expand their social circles and meet social needs through group matching. The survey questionnaire shows that 86.9% of LARP users and 76.6% of escape room users have had experience with group matching (see Figure 9), with asking merchants for assistance being the most common method of group matching. Furthermore, the group matching feature launched on the Meituan and Dianping platforms is also popular among players. Among users who have had group matching experience, 28.4% of LARP users and 61.6% of escape room users have used the Meituan or Dianping group matching feature (see Figure 10). The proportion of LARP users using Meituan or Dianping's group matching feature is slightly lower, possibly because LARP has a relatively lower barrier to entry and stronger social attributes, with some users preferring to play with acquaintances. In contrast, escape rooms have a relatively higher barrier to entry and weaker social attributes, so more users consider using Meituan or Dianping to match with unfamiliar but experienced players.



Figure 9 Proportion of Script-Based Entertainment Industry Users Who Have Had Group Matching Experience

Data Source: Meituan Questionnaire Survey


Figure 10 Methods of Group Matching for Script-Based Entertainment Industry Users

Data Source: Meituan Questionnaire Survey



Script Entertainment Industry

New Development Trends



(I) Expanding Consumer Base, Increased Proportion of Middle-Aged Group

Early consumers of script-based entertainment were primarily young people aged around 20-30, but with the standardization and diversification of themes and gameplay, more and more middle-aged consumer groups have begun to engage with script-based entertainment, with some becoming long-term players. In 2023, the consumption amount of LARP by people over 40 on the Meituan platform increased by 27.7% year-on-year, and its share of the total platform transaction volume rose from 4.5% in 2022 to 5.2%. Escape room consumption increased by 55% year-on-year, with its share of the total platform transaction volume rising from 6.8% to 8% (see Figure 11). The acceptance of script-based entertainment by the middle-aged demographic reveals that there is still room for continuous growth in the script-based entertainment market in the future, with the potential to become a more popularized form of entertainment. Consumers also expect the industry to continue innovating and providing more diverse products suitable for all age groups.



Figure 11 Changes in the Proportion of Spending by Users Over 40 in the Script-Based Entertainment Industry as a Percentage of Total Transaction Volume

Data Source: Meituan Research Institute



(II) Widespread Application of New Technologies to Offer Richer Products

In recent years, the script-based entertainment industry has gone "viral" multiple times and is now widely recognized by the public. However, with the influx of numerous entrepreneurs, the market is gradually becoming saturated, and the industry's demand for transformation and upgrading is becoming increasingly apparent. In this context, enhancing the technological content of the industry by applying advanced technologies such as smart devices, sound, light, and electricity effects, automated control, and AR/VR to provide consumers with richer and more diverse script-based entertainment products and gameplay has become an important direction for industry upgrading. Some escape room merchants mentioned in interviews that escape rooms have undergone multiple technological iterations, and the most cutting-edge technologies in the industry currently include virtual imaging, naked-eye 4D, and large-scale mechanisms, aiming to provide consumers with more novel and diverse product experiences. In the field of LARP, large-scale real-life LARPs have also broken through the limitations of traditional tabletop LARPs, applying more technology in the construction of physical scenes to provide consumers with a more realistic feeling. However, elements such as plot and puzzles remain the core of the script-based entertainment player experience. Advanced technology needs to be combined with high-quality script products to achieve the best results, rather than simply applying technology to existing script-based entertainment products. Taking LARP as an example, there are currently few scripts specifically developed for advanced technologies like AR and VR on the market. In the future, script publishers, LARP venues, and other entities need to collaborate to develop script products suitable for new technologies.


(III) Further Enhancement of Immersion, Bringing a More Realistic Experience

In recent years, immersive experiences in the tourism, culture, and leisure entertainment industries have become popular among consumers. Consumers hope to eliminate external distractions during their leisure activities, engage multiple senses, and obtain immersive experiences and deep emotional resonance. The script entertainment industry naturally possesses immersive characteristics; players can take on different roles, enter different spaces, and experience diverse life events and emotional feelings. To leverage this advantage, many script entertainment businesses use "immersion" as a selling point, enhancing players' immersive experiences in terms of clothing, props, technology, and plot. In 2023, the proportion of script-killing businesses on the Meituan platform with the word "immersive" in their name increased from 28% in 2022 to 33%, while the proportion of escape room businesses with "immersive" in their name increased from 30.6% in 2022 to 33.2%.


On the demand side, script entertainment players also show interest in immersive experiences. A survey shows that compared to online script killing, 91.8% of script killing players prefer playing offline, with 84% believing that the stronger sense of immersion and involvement in offline script killing is something online script killing lacks. Among all script killing players who completed the survey, 65.4% are willing to pay more than 100 yuan for an immersive script killing experience compared to a regular one. 72.4% of escape room players are interested in immersive escape rooms with NPCs, costume changes, and good lighting and sound effects, and 69.4% are willing to pay more than 100 yuan for an immersive escape room compared to a regular one.


This shows that the script entertainment industry is experiencing an "immersive" wave. Businesses are making improvements in clothing, props, technology, and role-playing, constantly optimizing scene design, plot arrangement, and interactive experiences to provide consumers with diverse and innovative gameplay and high-quality immersive experiences, thereby increasing consumer participation and satisfaction. Immersive experiences will be an important direction for future industry development. With the widespread application of advanced technologies such as AR and VR in the future, the immersive feeling of script entertainment will be further enhanced, bringing consumers a more realistic experience. At the same time, immersive experiences also lower the threshold for participation, helping to promote script entertainment from a niche market to a mass market, attracting consumers of different ages and interests.


Expansion of Script Entertainment to Lower-Tier Markets: Increased Proportion in Lower-Tier Cities and Counties

Since 2023, lower-tier cities, counties, and rural areas have seen rapid recovery, with some regions experiencing faster consumer market growth than first- and second-tier cities. The script entertainment industry initially emerged in first- and second-tier cities, but currently, the market in these higher-tier cities is fiercely competitive and supply is nearing saturation. The industry is now expanding into lower-tier markets to explore new development opportunities. As young people living and working in large cities return to their hometowns for holidays or to start businesses, script entertainment is gradually spreading to lower-tier cities and counties.


Meituan data shows that from 2023, the total transaction value of script killing in third- to fifth-tier cities increased by 4.1% year-on-year, with the proportion of third-tier cities in the national total transaction value increasing (see Figure 12). The total transaction value of escape rooms in third- to fifth-tier cities increased by 29% year-on-year, with the proportion of fourth- and fifth-tier cities in the national total transaction value also increasing (see Figure 13). Due to the generally lower average order value in lower-tier cities, the increase in the proportion of transaction value is not significant, while the increase in the proportion of businesses is more noticeable: in 2023, the proportion of script killing businesses in third- to fifth-tier cities accounted for 38.2% of the national total, an increase of 3.1 percentage points, while the proportion of escape room businesses accounted for 41.7%, an increase of 4.7 percentage points, with the overall proportion of script entertainment businesses increasing by 3.7% (see Figure 14). From a county perspective, in 2023, the proportion of script killing businesses in counties accounted for 16.3% of the national total, an increase of 2.9 percentage points, while the proportion of escape room businesses accounted for 16.1%, an increase of 3 percentage points. In the future, script entertainment is expected to gain greater development opportunities in lower-tier markets.



Figure 12 Changes in Transaction Value and Proportion of Script Killing in Lower-Tier Markets

Data Source: Meituan Research Institute


Figure 13 Changes in Transaction Value and Proportion of Escape Rooms in Lower-Tier Markets

Data Source: Meituan Research Institute


Figure 14 Changes in the Proportion of Script Entertainment Businesses in Lower-Tier Markets

Data Source: Meituan Research Institute



Expansion of Out-of-Town Consumers: Significant Growth in Out-of-Town Consumption

With the continuous expansion of the consumer base for script entertainment and increased player interest, some script entertainment businesses are beginning to expand their influence beyond their local areas, reaching across the country and attracting tourists from other regions. In 2023, cross-regional tourism and cultural consumption experienced a boom, which, while having some impact on the primarily locally-focused script entertainment industry, also drove growth in out-of-town script entertainment consumption. On the one hand, some well-known industry leaders are attracting experienced players from other regions to visit specifically for their unique plot designs and scene setups, or as a side activity during their travels. On the other hand, major tourism attractions are actively embracing new business models, combining script entertainment with local cultural backgrounds, historical stories, and other characteristic IPs to create new immersive tourism and cultural experiences.


Meituan data shows that in 2023, out-of-town consumption for script killing increased by 49.9% year-on-year, increasing its proportion in the total transaction value from 8.8% in 2022 to 12.1%. Out-of-town consumption for escape rooms increased by 83.9% year-on-year, increasing its proportion in the total transaction value from 12.9% in 2022 to 17.9% (see Figure 15). From a quarterly perspective, out-of-town consumption of script entertainment peaked in the third quarter, which coincides with the summer travel season, when a large number of consumers experience script entertainment during their travels.



Figure 15 Changes in the Proportion of Out-of-Town Consumption in the Total Transaction Value of the Script Entertainment Industry

Data Source: Meituan Research Institute



Platform Empowerment of Small and Medium-Sized Businesses: Promoting Healthy Industry Development

The chain rate of the script entertainment industry is relatively low. According to Meituan data, 98.2% of script killing businesses and 85.1% of escape room businesses on the platform are non-chain single-store businesses, including a large number of small and medium-sized businesses. For small and medium-sized businesses with smaller scales, located in lower-tier markets, or in the entrepreneurial stage, online platforms such as Meituan and Dianping provide information access, allowing them to quickly build their brands and reach potential customers at a relatively low cost. They can also utilize the data analysis and marketing tools provided by the platform to identify consumer needs and optimize operational strategies. The platform has lowered the barriers to entry and customer acquisition costs for small and medium-sized businesses, enriched market supply, maintained a certain level of market competition, and contributed to the healthy development of the industry.


In addition, the online review system and ranking system provided by the platform significantly reduce the difficulty of information searching and consumption decision-making for script entertainment consumers, alleviating information mismatch. According to a questionnaire survey by Meituan Research Institute, when information is insufficient, 69.2% of respondents will use comprehensive information platforms such as Dianping to obtain leisure and entertainment information. The review system and ranking system have presentation, brand, and spillover effects, which can drive the expansion of the overall script entertainment industry consumption scale, improve the supply level, and promote high-quality industry development.



Promoting High-Quality Industry Development

Suggestions



Targeted Regulation: Finding the Right Balance

Since 2023, governments at all levels across China have introduced a series of policies and regulations targeting the script entertainment industry, including the "Interim Provisions on the Management of Script Entertainment," laying out detailed requirements and penalties concerning content management, child protection, and safety production. This marks a new phase of "rule of law" in the industry's regulation and points the way towards high-quality development. Simultaneously, the recent slowdown in national consumption growth and weakening consumer confidence may impact the script entertainment industry, which directly serves a broad consumer base, leading to slower growth and business turnover. In this context, to support the prosperous, healthy, and sustainable development of the script entertainment industry, regulation can be more focused and flexible, prioritizing key areas affecting the industry's future while relaxing controls in other areas.


For example, copyright infringement has become a major obstacle to the development of the script entertainment industry in recent years. This is especially true in the script-killing sector, where the low cost of copying and distributing scripts has fueled rampant piracy. Some script-killing stores choose to purchase pirated scripts to reduce costs, leading to vicious market competition and even a "bad money drives out good money" phenomenon, undermining the supply of high-quality scripts. However, existing national-level policies and regulations for the script entertainment industry do not explicitly mention copyright protection. Supervision of script entertainment piracy mainly relies on different regions and departments enforcing the law and tackling typical cases, lacking a comprehensive copyright protection system. In the future, relevant government departments can further cooperate with script publishers, industry associations, and script entertainment stores to strengthen copyright supervision, combining legal regulation with industry self-discipline. Based on laws such as the Criminal Law, Copyright Law, and Anti-Unfair Competition Law, they can crack down on the producers, purchasers, and users of pirated scripts.


(II) Expand Application Scenarios and Promote Industry Transformation and Upgrading

Although the script entertainment industry has been in the public eye for many years, it still hasn't fully shed its early image as a niche entertainment for specific young consumer groups. In the future, the script entertainment industry needs to further expand its application scenarios, combining with tourism, cultural IPs, and other popular consumption trends, while also improving technology applications to promote industry transformation and upgrading.


On the one hand, the combination of script entertainment + tourism and script entertainment + IP has seen many successful cases in recent years. Scenic spots can enhance their visibility, promote local history and culture, and increase tourist dwell time by adding script entertainment projects. IP copyright holders can increase IP popularity and fan loyalty by developing script entertainment projects. These diverse application scenarios have also attracted large companies in the tourism, culture, and media sectors to enter the script entertainment industry, bringing new content and capital injection, and enhancing the vitality of the script entertainment market. However, these applications are currently limited to individual cases and have not yet become a widespread industry phenomenon. Government departments and industry associations can actively promote cooperation between the script entertainment industry and the tourism, media, and other industries to expand application scenarios and achieve mutual benefit and win-win results.


On the other hand, current technology applications have become an important direction for the upgrading of the script entertainment industry. Smart devices, automated control, AR/VR, and even artificial intelligence can help the industry provide rich and differentiated content to meet the consumption needs of different groups, especially suitable for creating popular immersive experience scenarios. In addition to script entertainment stores themselves investing in and introducing new technologies, government departments and industry associations can further introduce supporting policies to promote cooperation among equipment manufacturers, script entertainment publishers, and script entertainment stores in the upstream and downstream of the industry chain, promote the application of advanced technologies, and guide industrial transformation and upgrading.


(III) Improve Industry Standards and Promote Multi-Party Governance

As an emerging industry, the script entertainment industry is still in its growth stage, and some areas lack clear policies and regulations. Therefore, the industry needs to strengthen self-governance, improve industry standards, and form industry consensus to promote multi-party governance among upstream and downstream entities, industry associations, platforms, and government departments within the industry. Currently, there are some practices of industry governance in the script entertainment industry. Industry associations and online platforms can play a positive role in this process, guiding merchants in the industry to abide by policies, regulations, and industry standards, and jointly promoting the healthy development of the industry.


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