Source: YuanSight

The landscape at Hongguo has changed again. Despite continued support for live-action short dramas, the trend of AI short dramas captivating audiences is unstoppable.

If live-action short dramas could reinvigorate redundant resources in the film and television industry with their fast-paced rhythm, the impact of AI short dramas is enough to shatter the industry's 'people-centric' foundation.

Viewers frequenting Hongguo can easily sense the fervor for AI short dramas this year. Their auto-recommendation lists rarely feature live-action shorts anymore, and the once-prominent short drama stars from last year have faded into obscurity.

The 'reshuffling' of AI short dramas hasn't peaked yet, and capital deployments are still in their infancy. After incubating Hongguo, the top short drama platform, ByteDance has found its second 'seed' – Jimeng.

Image Source: Xiaohongshu

Recently, ByteDance's Jimeng AI launched the film and television content label 'Jimeng Studios,' open to film and series projects. Selected projects will receive support in computing power, technology, funding, and industry resources.

Jimeng AI stated it will collaborate with film and television companies, professional teams, and AI content creators through a tiered partnership mechanism. Initial industry partners include Yihua Tiankai, Huanyu Film and Television, and Shanghai Animation Film Studio.

Previously, Hongguo had already siphoned most resources from the short drama industry. Now, Jimeng is building an AI content creation platform via its self-developed model Seedance and actively partnering with veteran players in traditional film and television, once again engaging in 'resource matching.'

From short dramas to AI short dramas, ByteDance, which once missed out on the long-form video boom, is now reclaiming its share in the era of fast-paced content—though this time, too many contenders are vying for a piece of the pie.

01

Live-Action Short Dramas Are Disappearing

In today's film and television industry, long-form series are declining, and the film market is volatile, leaving short dramas as the thriving sector.

QuestMobile data shows that in July, Hongguo's daily active users reached 168 million, surpassing the combined DAUs of iQIYI, Youku, Tencent Video, and Mango TV. Despite its large base, Hongguo's growth hasn't slowed; its monthly average users in July rose 107% year-on-year.

Image Source: Nomura

A closer look reveals an even more pronounced outbreak (boom, translated as 'surge') in AI short dramas within the market.

Data indicates that the domestic AI and comic drama market could exceed 40 billion yuan in 2026, growing 138% year-on-year. In the first half of 2026, 367,000 micro-shorts were released across platforms, with AI shorts accounting for over 74%. Over 1,500 new AI dramas enter the market daily.

Hongguo's Short Drama Creator Service Center continues to promote live-action shorts, launching another Special Investment Plan (special investment plan) in July. However, few live-action hits have emerged this year.

The AI series *Legend of the Ten Thousand Demons*, launched in March, has already reached Season 12, advancing at two seasons per month with sustained popularity. Its 12th season debuted with 137 million views on September 5, setting a Hongguo record.

Image Source: Yunhe Data

According to Yunhe Data, the 12th season has surpassed 127 million effective views, ranking first on Hongguo and third overall.

The production team, Guangyu, is a typical AI short drama crew, starting with just six members. Industry estimates put the cost per season at around 100,000 yuan, with revenue from 11 seasons reaching 20 million yuan.

Meanwhile, among Hongguo's top 10 trending short dramas, eight are AI comic dramas, and only two are live-action. *When the Good Rain Knows the Season*, starring Guo Yuxin ('Queen of Short Dramas'), ranks tenth.

AI short dramas boast rapid production cycles. If a first season goes viral, the second can launch within a month or two, effectively extending IP heat. Live-action shorts, especially high-quality ones, often take years to develop a second season, struggling to keep pace with audience demand.

The speed and efficiency once prized by live-action shorts pale in comparison to AI short dramas.

AI short dramas offer faster production, higher efficiency, and lower investment. Their impact on traditional workflows extends further—AI video platforms are promoting a 'super creator' model, potentially rendering even six-to-seven-person studios obsolete.

02

The Shift in Productivity Tools

The AI short drama *The Laid-Off Girl*, created by Jimeng AI and Xiaoyunque's Super Creator Feifeifei, has amassed 480 million views on Douyin. The protagonist, Fang Taozi, became the first breakout AI character IP, securing ad deals and gracing fashion magazine covers.

Image Source: Weibo

Another AI short drama, *The Abyss*, created by Xuanjiu (also a Jimeng AI and Xiaoyunque super creator), tops Hongguo's AI drama recommendations.

Jimeng AI and Xiaoyunque are ByteDance's AI video and image platforms, with the former under Volcano Engine and the latter launched by the CapCut team. Tianyancha shows Beijing Volcano Engine Technology Co., Ltd., founded in 2020, is a Douyin Group member.

ByteDance spared no effort in supporting live-action short drama ecosystems, benefiting writers, directors, and actors through incentive programs. In the AI era, it remains adept at 'partner binding.'

Member points, revenue sharing, and Douyin traffic support have paved a path from model support to content monetization for independent creators. Other platforms lacking content outlets pale in comparison.

Nomura recently tracked China's internet app ecosystem, noting in its report that Douyin has become China's most widely used app. 'ByteDance's product suite now dominates China's mobile internet market.'

Beyond ByteDance, platforms like Kuaishou's Kling AI have launched similar super creator programs. A new generation of productive KOLs is being recruited by AI content platforms, poised to become the core creators of the AI era, potentially dismantling traditional multi-person film and television structures.

With talent secured, these content platforms still seek leverage from traditional film and television—but ownership of production tools has shifted.

Traditional awards like the Hundred Flowers Awards, Golden Rooster Awards, Pingtan International Film Festival, and Beijing Film Festival have added AI short film categories. Jia Zhangke, a wild card advocate for Hongguo shorts, frequently appears on AI platforms' collaboration lists.

Image Source: Xiaohongshu

AI film and television still aspire to enter the mainstream, but the latter's demand for the former seems greater.

Jimeng's Studios plan focuses on AI film and television, aiming to incubate projects for long-form platforms and theatrical release. Participants range from professional studios to experienced individuals or grassroots creators.

Announced partners include Shanghai Animation Film Studio (*The Monkey King*, *China's Amazing Tales*), Huanyu Film and Television (Yu Zheng's company), and Yihua Tiankai, a leading 3D animation studio.

In live-action shorts' refinement strategy, platforms partnered with traditional film and television to enhance lighting, makeup, and cast long-form stars. With AI, the 'super creator + self-developed model + proprietary platform' model democratizes production tools, while creators within these systems demand significant AI model computing power.

The AI film and television era isn't a sequel to live-action shorts; all production relations will be reshaped. ByteDance, representing entities combining model factories and content platforms, will disrupt traditional studios beyond industry expectations.

03

The Rise of Intermediaries

Even ByteDance is engaging in internal competition, underscoring the heated AI video generation race.

Jimeng and Xiaoyunque both spotlight Seedance as their core selling point, with CapCut also announcing the Seedance model's debut.

Despite being ByteDance's top performers, securing Seedance for promotion involves fierce competition. LatePost reported that Seedance 2.0 generates over 1 billion yuan in annual recurring revenue (ARR) for Volcano Engine monthly. The three major apps incorporate Seedance pricing into their systems, offering member (membership), points, and other discounts, with final price differences measured in cents.

Internally, ByteDance's price competition has peaked, leading to a focus on workflows and niche audiences.

For example, Jimeng targets vertical commercial users, prioritizing stability and bulk output, monetizing through premium tiers. Xiaoyunque adopts a 'grassroots' approach, promoting 'blockbuster creation with a single sentence.'

Beyond ByteDance, Minimax has self-developed large models, powering apps like Hailuo AI and Minimaxhub. Other AI applications from SenseTime, Kunlun Wanwei, and Alibaba rely on proprietary models.

Long-form platforms like iQIYI's Nadou Pro and Tencent Video's WorkReally have also entered the fray.

Self-development is one path; aggregation platforms are another.

*The Laid-Off Girl* was backed by LibTV, a professional AI video platform that integrates mainstream models into a low-threshold workflow, offering end-to-end services from script to final cut.

Flova, which claims to create videos through chat, has grown rapidly, completing two funding rounds from Sequoia, IDG, and Cloud Nine Capital, totaling over $80 million.

Notably, LibTV and Flova were founded by Chen Mian and Guo Lie, both ex-ByteDance and former CapCut key figures.

These independent agents dominate AI video production, forcing major firms to guard against user poaching. However, big tech retains an edge through ecosystem closures—producing content is common, but owning copyrights and distribution channels secures industry footing.

In the AI film and television era, individual power is amplified, large organizations struggle, and physical sets lose appeal. While traditional methods persist, all must weather the tide before it recedes.

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