Owl & Co. Report: Two-Thirds of Non-China Microdramas in Q3 2026 Were AI-Generated
According to Owl & Co.'s report titled "What We Watched on Vertical," AI-generated vertical dramas have taken the lead on non-Chinese platforms. In the third quarter of 2026, AI-created content accounted for two-thirds of the releases across 20 major platforms, a significant rise from 3 percent in the first quarter and 28 percent in the second quarter. In China, AI production dominated with over 95 percent of titles released in Q1 2026. Among paid applications, only ReelShort's My X-Ray Vision Sees Right Through You and You've Been Replaced, First Love made it to the top 20. The standout title for the quarter was ReelShort's The Great and Powerful Genie, while tracked apps amassed 63 billion views, with TikTok's PineDrama capturing more than half. DramaBox led paid apps, securing 36 percent of views.
Key facts
- Two-thirds of vertical drama releases outside China in Q3 2026 from 20 top platforms were AI-generated, per Owl & Co.
- AI-generated releases rose from 3 percent in Q1 2026 to 28 percent in Q2 to two-thirds in Q3 outside China
- More than 95 percent of titles released in China in the first three months of 2026 were reportedly AI-made
- Only one live-action title, ReelShort's My X-Ray Vision Sees Right Through You, made the top five by minutes watched
- ReelShort's The Great and Powerful Genie was the quarter's top-performing title
- Tracked apps generated 63 billion views and two billion viewing hours in Q3
- TikTok's PineDrama added 15,501 titles, a more than 300 percent quarterly increase, and took over half of all views
- Paid-app view share: DramaBox 36 percent, ReelShort 29 percent, NetShort 20 percent, DramaWave 11 percent
Entities
Institutions
- Owl & Co.
- ReelShort
- DramaBox
- NetShort
- DramaWave
- TikTok
- PineDrama
- The Hollywood Reporter
Locations
- China
- United States