- On October 18, 2026, the South China Morning Post (SCMP) reported that generative AI is transforming the vertical microdrama industry, reshaping production, casting, business models, and content quality.
- Director Paddy Ma said production crews that once numbered 20–30 people in the United States and as many as 100 in China can now produce AI-generated films in about a week with just 2–5 people.
- A turning point came on February 12, 2026, when Seedance 2.0 launched, significantly improving AI video quality and making it competitive with traditionally filmed productions.
- However, AI has not eliminated manual work. Producers must continually refine prompts, inspect visuals, and correct continuity errors between scenes.
- Generating 720p video costs approximately US$0.10–0.20 per second. Producing 15 seconds of acceptable footage can cost US$8–90 in practice because repeated generations are often necessary.
- Price competition in China is fierce. Some workers producing English-language films in Zhengzhou earn just 3,000–4,000 yuan per month, equivalent to US$450–600.
- Actor Stevan Miladinovic said his acting opportunities fell sharply after May 2026. According to an industry source in Los Angeles, casting opportunities dropped by approximately 90% over six weeks.
- Actors fear that studios may use their images, faces, and voices to create AI characters without obtaining appropriate consent.
- On September 17, 2026, China’s broadcasting regulator announced measures to support high-quality short dramas and improve the reach of live-action productions.
- AI is also creating opportunities to produce fantasy, science-fiction, and effects-heavy films on smaller budgets. Some producers are experimenting with combining real performances with AI-generated settings and AI-assisted post-production.
📌 AI is rapidly restructuring the vertical microdrama industry, sharply reducing crew sizes and demand for actors while leaving unresolved challenges involving quality, regeneration costs, and image rights. Seedance 2.0 is regarded as a technological turning point in 2026. While fully AI-generated productions intensify price competition, hybrid models combining real actors with AI-assisted post-production are emerging as a way to balance economic efficiency and artistic quality.
