Artificial intelligence-produced content has rapidly overtaken live-action productions in China’s short-drama scene this year, generating a series of challenges such as content duplication, a notably low success rate, and stricter revenue-sharing conditions for creators.
More than 95% of the 128,000 new mini dramas released in China during the first quarter were created using AI, meaning thousands of these projects flood Chinese streaming platforms daily, according to data from the China Network Audio-Video Association.
Furthermore, the number of live-action mini dramas released in June declined to 1,629 from 1,934 at the beginning of the year, indicating fewer new projects are launching. On the Redguo Short Drama’s Top 10 Hot Chart, the number of live-action series dropped to just four on July 20 from ten on March 19.
Chen Qi, a film and television producer and member of the Chinese Writers Association, explained that AI-animated dramas cost about two-thirds less to produce than traditional live-action works. While a high-quality live-action mini drama can cost between CNY200,000 and CNY1 million (USD 29,460 to USD 147,300), an AI animation might only cost CNY100,000 to CNY500,000, which is why many producers are turning to AI content.
However, increased competition and widespread content sameness have decreased the chances of creating a hit. Popular short dramas often spawn numerous AI-generated imitators with nearly identical plots across various platforms, differing only in character names and minor story elements.
With the limited time users spend viewing content each day, exposure for individual projects becomes increasingly diluted, often causing most series to quickly fade into obscurity after release.
In the first half of this year, over 221,900 AI short dramas premiered online, but only 1,055 surpassed 100 million views, and merely 12,000 achieved over 10 million views, according to DataEye. Third-party tracking data, including Yunhe Data and Gudu Data, show even lower success rates for AI animations—only 62 out of roughly 50,000 series launched in March surpassed 100 million views.
The influx of new releases has also driven up production costs for AI short dramas over the past six months, rising to CNY3,000 or even CNY5,000 (USD 441.90 or USD 736.50) per minute of content, up from CNY1,000, with higher visual quality standards pushing expenses further.
Producers are also facing more unfavorable revenue-sharing terms on streaming platforms. Many platforms have reduced guaranteed minimum earnings and cut back the revenue-sharing percentages.
Previously, creators of short dramas could earn about CNY800 to CNY1,000 (USD 117.84 to USD 147.30) for every 10,000 views, but now they might only receive CNY100 for the same number of views. Only major studios and high-profile series tend to secure better revenue splits.
Determining whether an AI short drama will be profitable often takes up to six months after its release, according to industry insiders. Overall, making a profit has become more difficult, and only productions with strong viewership can generate lasting income through sequels.
Lv Shaolong, deputy manager of Judian Short Drama and Lingju Animation, stated that the momentum behind AI short dramas is unlikely to slow down and that this format will continue expanding its influence into other areas. AI content is now being applied in gaming, educational videos, and e-commerce marketing clips, with new commercial opportunities continually emerging despite these sectors still being in early stages.