China's Short-Drama Producers Use Low-Cost Strategy to Test Audience Demand
Chinese short-drama producers are leveraging low-capital production and AI-driven efficiency to test audience demand before committing significant resources. This approach allows companies like ChoZan, led by Ashley Dudarenok, to gauge interest through initial clips and scale marketing efforts for successful titles while quickly pivoting away from underperformers. The rise of short-drama formats is reshaping the entertainment landscape in China, with over 128,000 AI-generated short dramas released in Q1 2026. The market size reached approximately ¥100 billion ($15 billion) in 2025 and now ranks second among audiovisual categories by daily usage time. Despite the low production costs—often just hundreds of thousands of yuan—the cost to acquire audience attention has risen sharply, with ad impressions increasing from ¥50–80 per thousand in 2023 to up to ¥300 during peak periods. While some hits like 'Niu Lai' have generated significant revenue (¥45.5 million in three weeks), most short-dramas still fail to deliver meaningful returns.
Topics: AI production audience acquisition market competition short-dramas