Short‑drama apps like DramaWave and ReelShort flood smartphones with one‑ or two‑minute stories that end in a cliffhanger. In 2024 China’s market hit $6.9 billion, eclipsing domestic box office revenue. The boom rests on low‑budget, algorithm‑driven production that feeds endless scrolling.

Kunlun Tech, parent of DramaWave, began producing AI‑generated dramas in 2025 and now hosts more than 1,000 titles. AI slashes production time from three months to under a month and cuts costs by 80 %‑90 %, according to FlexTV’s VP Tang Tang. The result is a lean crew of about ten people and a data‑driven decision loop that rewards audience feedback.

The shift has rippled beyond production. Scriptwriters like Phoenix Zhu, who once sold a 20,000‑yuan script, now face lower rates as AI writes the core plot. Meanwhile, studios target the U.S. market, which accounts for about half of overseas revenue, and plan to raise AI output to 20 % of their catalog. This strategy lets them experiment with new tropes while keeping overhead minimal.

As AI tools mature, the short‑drama format will likely become the standard for micro‑content, blending rapid iteration with data‑driven storytelling. For creators, the trade‑off is clear: fewer roles but higher volume. The industry’s next chapter hinges on balancing automation with authentic human touch. Industry analysts warn that overreliance on automation could erode narrative depth today.