Summary of Key Points
The days of paid live-action short dramas are tough: today, their daily revenue (daily market share) is less than 40 million yuan, which is only one-fifth of the daily revenue of AI-driven short dramas. AI short dramas are gaining momentum due to their higher efficiency and more profitable business models (both from ad placements and sales of production tools). Additionally, the rise of free short dramas and changing user preferences are pushing paid dramas out of the mainstream. Those in the industry who do not switch to AI or manga-based content may be left behind.
Current Situation of Paid Live-Action Short Dramas: Daily Revenue Below 40 Million Yuan
What does it mean when the daily revenue of paid live-action short dramas is less than 40 million yuan?
- Data speaks for itself: On a certain day in May, the combined revenue of the top 15 live-action drama companies was only 37 million yuan, and even including smaller companies, the total did not reach 40 million yuan. On average, the top 20 companies each earned just 2 million yuan per day. In contrast, in previous years, a popular live-action drama could generate more revenue in a single day. The current situation is indeed bleak.
- Comparison with AI: AI short dramas have daily revenues of over 200 million yuan, and the sales of production tools can bring an additional 50 million yuan. This means that the revenue of live-action dramas is only one-fifth of that of AI-driven content. Calling them a “fossil” of the industry is not an exaggeration.
Why Are AI Short Dramas Outperforming?
The key to AI short dramas’ success lies in their efficiency and profitability:
- Efficiency: AI short dramas do not require actors, rental of locations, or shooting of actual scenes; they use algorithms to generate visuals and plots, making the production process much faster than for live-action dramas. For example, what might take weeks for a live-action drama to produce could be completed in just a few days or even hours by AI.
- Comprehensive Business Model: Live-action dramas can only rely on ad placements (where platforms recommend them to users who then pay to watch). In contrast, AI short dramas also generate revenue from selling production tools to other creators, allowing them to earn twice as much. Capital always seeks profit, so it naturally favors AI-driven content.
Challenges Faced by Paid Dramas
In addition to the threat from AI, paid live-action dramas are dealing with two additional issues:
- Free Short Dramas Competing for Users: The number of free short dramas is increasing, and users have become accustomed to watching content for free. As a result, the demand for paid dramas is declining.
- Changing User Preferences: Although AI-generated dramas may seem artificial, they offer fast-paced stories and diverse genres (such as action-packed or time-travel themes), meeting users’ desire for quick, enjoyable entertainment. Live-action dramas, with their longer production cycles and higher costs, struggle to keep up with these changing preferences.
What Should Practitioners Do?
The industry is changing, and practitioners can no longer rely on luck:
- Early Warnings: Last November, some people warned that paid live-action dramas might become less popular and suggested switching to AI or manga-based content. These predictions have now come true.
- Take Action: Teams with no projects, idle production bases, and actors without roles should not blame platform policies for the changes; they need to learn new skills (such as using AI to create manga or short dramas). Any further hesitation could leave them behind in the industry.
Although platforms claim to be investing in supported live-action dramas, it is ultimately the users’ choices that determine their success. Trends are inevitable, and products that are not efficient (like paid live-action dramas) will eventually be phased out.
In Conclusion
Paid live-action dramas are not “doomed,” but they have fallen behind the times. In the face of the AI revolution, either adapt to change or risk being left behind. For users, it’s likely that more and more short dramas will be generated by AI in the future. As long as the content is good, who cares whether it’s made by humans or machines? For practitioners, transformation is the only way forward.