AI-generated video is moving from an experimental production tool to a substitute for performers in China’s fast-growing short-drama market. The China Netcasting Services Association says about 128,000 short dramas were released in the first quarter of 2026—three times the total for all of 2025—and 95% were generated with AI.
The cost gap helps explain the shift. Tsinghua University professor Shen Yang told the Financial Times that a minute of AI video now costs about $90 to $120, roughly one-tenth of a production using human actors. Newer systems such as ByteDance’s Seedance and Alibaba’s Wan can create increasingly realistic digital performers at a speed and price traditional shoots cannot match.
The transition has direct labor consequences. China’s entertainment sector employs about 690,000 people, while 15 million people identify livestreaming as their main job. The report says some performers have been required to provide their voice and likeness for model creation before being dismissed, and lawyers have seen AI-related labor disputes rise over the past two to three years. The available figures describe a rapidly changing market, not the quality or provenance of every released drama. Contracts governing consent, compensation and future reuse of a performer’s identity are becoming as important as production costs.