"China's micro-drama industry is projected to exceed 120 billion yuan this year, surpassing the country's entire theatrical box office for the first time, serving 660 million users."
"In January 2026, a new AI-generated micro-drama went live on a Chinese streaming platform every 90 seconds, showcasing the rapid growth of this industry."
"The production cost of AI-generated micro-dramas is roughly one-tenth of a live-action shoot, with a usable rate of AI-generated footage climbing above 90 percent."
"Local governments are funding production hubs and offering subsidies of up to two million yuan per drama, creating an industrial policy framework for AI entertainment."
China's micro-drama industry is set to surpass 120 billion yuan in 2026, exceeding the theatrical box office. The industry features AI-generated videos, with over 50,000 titles added to Douyin in March 2026 alone. Production costs are significantly lower, at one-tenth of live-action shoots, and the usable rate of AI footage exceeds 90 percent. Local governments are funding production hubs and providing subsidies, while the NRTA regulates content. This model is now being exported globally, marking a significant shift in entertainment production.
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