AI animated micro-dramas fuel new race among China's video platforms

by XIAO Fang

AI-generated "manhua dramas" — short comic-style videos animated with AI tools — are emerging as one of the fastest-growing formats on China's short-video apps, including Douyin, the Chinese version of TikTok. Advertisers are rapidly increasing spending as the format gains traction.

People familiar with the matter said daily ad spending on the genre in Ocean Engine, Douyin's ad platform, has roughly doubled in recent days, reaching levels normally seen during major consumer-brand campaigns. Spending had already been in the several-million-yuan range.

The format has expanded quickly on Douyin and rival app Kuaishou as studios look for cheaper, scalable alternatives to live-action short dramas. Industry tracker DataEye-ADX estimates more than 19,000 titles are active across platforms, with over 4,000 promoted in the past month. The highest-performing title in the category has reached around 31 million views.

A producer said a paid AI micro-drama that reaches 10 million views typically earns RMB 200,000 to 300,000 or about US$28,000–42,000 in net profit, while a free ad-supported title generates about RMB 100,000. Only about 20% of live-action short dramas break even, and even modest hits need roughly 40 million views.

Cost is a key driver. Soochow Securities estimates AI tools can raise production efficiency by 50% to 80%, cutting per-minute costs to RMB 1,000 to 2,500 from RMB 2,000 to 5,000. Producers say AI cannot yet replicate subtle facial expressions but is cheap enough to attract new entrants.

Platforms are moving to secure talent early. Kuaishou has rolled out cash subsidies, AI-credit allocations and traffic incentives to expand the format, after using its Kling AI engine last year to produce China's first fully AIGC short drama. The company says its animated-comic channel has surpassed 4 million users in six months since launch, with daily ad revenue above RMB 4 million.

Producers say returns remain most predictable on Douyin, while many studios are waiting for clearer commercial signals from Kuaishou before expanding their investment in the format.