Chinese short drama industry pivots to AI-generated content

China's short drama sector, which raked in $6.9 billion in 2024, is quickly embracing generative AI to streamline content creation at a lower cost. Currently, AI is responsible for around 470 new drama releases each day, with firms like Kunlun Tech and FlexTV either fully transitioning to or heavily relying on AI for their productions. The global microdrama market hit $11 billion in 2025, with expectations to rise to $14 billion by the end of 2026, and the U.S. contributing $1.5 billion. AI can slash production expenses by 80-90% and reduce timelines from several months to less than a month. Traditional film crews are being replaced by smaller teams focused on AI-driven processes, leading to tighter deadlines for writers who must be more visually detailed. Phoenix Zhu, a screenwriter, highlights the impact on wages and project cancellations in this changing landscape, while Kunlun Tech's Han "Daniel" Fang targets 20% of content to be AI-generated. FlexTV has stopped all traditional projects, and investor Shangguan Hong notes that short dramas are ideally suited for AI's immediate, data-driven methods.