Key facts
- China's micro-drama industry is rapidly adopting AI video generation tools.
- AI-driven production can cost one-tenth of traditional methods and takes less time.
- Over 120,000 microdramas were released in early 2026, with 95% generated by AI.
- The shift to AI has led to fewer live-action productions and job losses for actors and crew.
- AI offers advantages for genres like mythological fantasy and historical stories.
- The industry is grappling with the challenge of maintaining quality despite lower costs.
China's rapidly expanding micro-drama industry is undergoing a significant transformation as artificial intelligence-powered video generation tools become increasingly sophisticated and cost-effective. This shift is challenging the traditional production model that relied on speed, low costs, and tightly packed studio sets.
AI tools can now produce micro-dramas at a fraction of the cost and time of live-action shoots, with usable footage rates exceeding 90 percent. This has led to a surge in AI-generated content, with over 120,000 microdramas released in the first three months of 2026, 95% of which were AI-generated. Genres like mythological fantasy and historical stories are particularly benefiting from AI's ability to create complex visual effects.
The rise of AI has created a "bitter winter" for many in the live-action micro-drama sector. Actors and crew members are experiencing a sharp decline in job opportunities as production bases fall quiet. For instance, actor Junlin reported working only seven days in June, a stark contrast to the 25 days per month she was filming in the spring. This technological disruption is impacting livelihoods and creating uncertainty about the future of creative industries.
Previously, the micro-drama industry thrived with "vertical studios" that offered numerous sets side-by-side for quick turnarounds. In Zhengzhou's Dazhi Film and Television Base, over 50 sets cover 10,000 square meters, allowing directors to handle all aspects of production on-site. This model enabled rapid expansion, with a 100-episode series costing between 300,000 and 800,000 yuan and a return cycle of three to six months. The sector directly employed around 690,000 people in 2025 and generated over 2 million jobs.