In January 2026, the platforms streaming Chinese companies recorded the launch of more than 14,600 short series generated with artificial intelligence. There are 470 new titles a day, all ready to be distributed through applications like Douyin or Hongguo. The fact that is not widely disseminated is where almost all of that content went.
Long live the microdramatic. The microdramas (either duanju) They are mobile series with episodes of between two and five minutes, usually adaptations of novels previously published in web format, and which are disseminated on pages financed not with subscriptions, but through micropayments and algorithmic advertising. The narrative of these series is extremely formulaic, despite the fact that on paper it seems very varied: the rich also cry, time travel, sentimental revenge, melodramas concentrated in a few minutes, all designed (circular and repetitive plots, characters that enunciate what is happening) to consume between subway stops.
The irresistible growth of duanju. The format had been flourishing for years before AI will arrive. The Chinese microdrama market lost revenue from 500 million dollars in 2021 to 7,000 million in 2024surpassing the national film box office that year for the first time. In 2025, the sector was already close to 9.4 billion. It is estimated that more than 830 million users consumed the format, and about 60% of them pay or make transactions on platforms that offer a few free episodes to hook viewers. As in so many other industrial aspects, China has built, without attracting the attention of the rest of the world, the largest serialized entertainment market in terms of volume on the planet.
AI Invasion. A live-action microdrama cost more than one million yuan to produce in 2024. With AI tools like Kling or Seedancethe same project It costs between 50,000 and 100,000 yuan (between 6,000 and 12,000 euros). In the cheapest production studios, the figure drops to 30,000 or 40,000 yuan per complete series. The cost per minute of content fell from between 3,000 and 5,000 yuan at the beginning of 2024 to between 200 and 1,000 today.
Everything changes. This fall has transformed the structure of the microdrama industry, and has boosted companies specialized in the AI variant of the genre such as Jiangyou Culture, which with the support of China Literature (the publishing group affiliated with Tencent), grew to a thousand employees and has a turnover of around 1 billion yuan annually with net margins of between 20% and 30%. Judian, another production company, generates around a hundred microdramas photorealistic films per month and between one thousand and two thousand audiodramas with synthesized voice.
99.88%. Of the 127,800 AI series in circulation in February 2026, the proportion that crossed the 100 million views threshold was 0.117%. In 2025, the specialized app Douyin launched 60,000 series generated with AI, and only ninety-six reached that same number. That 0.16% success rate has been dropping as production volume has risen. But there are also differences with live-action microdramas: the most watched AI series accumulated about one billion views, and the most successful live-action series, 4.4 billion. Viewers detect the synthetic quality and the uncanny valley the emotional commitment is burdened, which leads, according to experts, to a significant abyss: the viewer does not want to pay for it.
Advertising spending. The dominant business model in this million-dollar sector is known as “traffic arbitrage”: produce cheaply with AI, invest aggressively in advertising within the platforms to generate visits and pray to survive on the margin. In March 2026, daily advertising spending on AI microdramas on Douyin exceeded 70 million yuan, surpassing that of live-action productions for the first time. That is to say: the loop can be financially sustained even if the audiences do not attend.
The actors suffer. Actor Li Wenhao entered the microdrama industry in 2023 and worked 50 consecutive days. In March 2026, only six worked, according to Hello China Tech. Castings are increasingly rare, microdrama production companies they hire fewer and fewer humans: For example, Chengdu Zhongdu, a medium-sized studio, announced in March that it was abandoning production live-actionconverting its entire workforce to AI. Actress Hao Lei, one of the most respected figures in Chinese dramatic cinema, has said that AI will replace 90% of actors, adding that in certain records it already surpasses the human equivalent.
Stolen faces. The displacement of professional actors was foreseeable, but the massive and unauthorized appropriation of real faces was not so predictable. In early 2026, a 72-episode AI-generated historical drama appeared in Hongguo and gained widespread popularity before a blogger specialized in traditional Chinese clothing discovered that one of the characters had her face. The same thing was detected by another content creator, and neither of them was compensated or informed, Hello China Tech also says.
And of course, professional actors have also been victims of this type of practice: Yi Yangqianxi (Jackson Yee), Xiao Zhan and Dilraba Dilmurat are some of them. But the cases of semi-anonymous people, like these content creators, are much more bloody: they discovered the theft of their face almost by chance, so anyone who has uploaded enough content to the internet to train an AI may find themselves in a similar situation.
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