Short videos have become a key component of modern pop culture, with concise and engaging plot lines keeping viewers constantly hooked. Recent data reveals that the number of domestic short video viewers in China has surpassed 500 million, generating a revenue of 50 billion yuan. Leading platforms like Kuaishou Technology and ReelShort have already begun expanding into international markets.
The global market for short videos is on the brink of rapid growth, with projections suggesting that the export value of Chinese short video content could exceed 250 billion yuan. As the industry evolves, what trends will shape its future?
Additionally, how will AI-generated content (AIGC) influence scriptwriting, acting, and the broader short video ecosystem? What technologies will drive the success of AIGC-powered short videos in overseas markets? These are critical questions that the industry must carefully consider.
Global Expansion Challenges: Homogenization and Payment Dilemmas in AIGC Short Dramas
As AIGC-driven short dramas expand globally, they encounter significant challenges despite their growing popularity. One pressing issue is content homogenization. The rapid replication and distribution of similar plots and scripts have led to a lack of innovation and diversity in the market.
This over-saturation of repetitive content diminishes the appeal of short dramas, making it harder for viewers to discover unique and engaging stories. As a result, the long-term sustainability of the market is at risk, with creativity stifled by an excess of formulaic content.
Additionally, while in-app purchases in overseas markets have generated hundreds of millions in revenue, the payment conversion rate remains low at just 3 to 5%. This reflects users’ reluctance to pay for content, potentially due to concerns over content quality, user experience, or the existing payment models.
Many viewers opt for free access to content that often feels repetitive or lacks depth. This creates a major hurdle for short drama producers who rely on a pay-to-view model, emphasizing the need for more innovative and high-quality content to incentivize users to pay.
To address these challenges, the short drama industry must seek breakthroughs in content creation, leveraging the strengths of AIGC technology to develop more innovative and differentiated content.
AIGC-Powered Short-Dramas: Revolutionizing Production, Quality, and Global Expansion
In July 2024, Kuaishou Technology launched “The Miraculous Lens of Mountains & Seas: Slaying Waves & Cleaving Currents”, a five-episode short drama series. This production was powered by Kuaishou’s self-developed video generation model, “Kling AI,” which provided deep technical support throughout the process—from scriptwriting and shot design to the final video presentation and even the musical score, all created by AI tools.
Blending traditional Chinese culture with elements of fantasy, this AIGC short drama has garnered over 52 million views across platforms, sparking widespread discussions. This success highlights the groundbreaking growth potential of the model connecting the AI with short drama in the market.
The competition in the “AI tools for artistic creation” has reached a fever pitch. From ByteDance’s Jimeng AI, which assists with creative and artistic production, to Meitu’s MOKI, a short film creation tool supporting various formats such as animated shorts and web dramas, and OpenAI’s Sora, emphasizing text-to-video AI generation—these tools have captured the attention of creators worldwide.
As a result, AI-generated content (AIGC) is reshaping the short drama ecosystem, driving a full-scale transformation and upgrade across the entire production chain—from content creation to promotion and consumption.
How can the AIGC technology empower the global expansion of short-drama?
With these key technologies, China has witnessed a surge in the “short drama + AI” trend, where AIGC is rewriting the script for the industry. Taking the success of “The Miraculous Lens of Mountains & Seas: Slaying Waves & Cleaving Currents” as an example, we can discover the benefits that AI-powered short dramas are generating within the industry:
Cost Reduction and Efficiency Gains
The application of AIGC has significantly lowered production and labor costs while boosting efficiency. For instance, the director of the short drama noted that with AIGC technology, the production cycle was reduced to just two months, saving 66% of time compared to the traditional methods. This increase in efficiency marks a major breakthrough for the short drama industry.
Enhanced Content Quality
AIGC has also elevated the overall quality of short dramas, resulting in more refined visual effects and storytelling. The success of “The Miraculous Lens of Mountains & Seas” not only highlights Kuaishou’s keen strategy in short drama content but also underscores the short drama + AI model could work.
Facilitating Global Expansion
AIGC has made it easier for Chinese short dramas to enter international markets by reducing production costs. A report from a financial institution shows that using AI for post-production, the technical cost for one minute of a domestic short drama is around 50 yuan. When combined with face-swapping technology, the total production cost can be kept under 100,000 yuan, far lower than that of locally produced short dramas overseas.
From both efficiency and cost perspectives, AIGC is a game-changer for the short drama industry. Across the entire production cycle, AIGC can now systematically create successful templates. However, the next key focus for the industry is how to scale up exports and enter the untapped markets.
The Short Drama Trend in the Latin American Market
Entering and validating new markets is no easy task, but the behavior of users watching short dramas can offer early insights for the industry. According to data.ai, revenue performance in Latin America is starting to show promise, accounting for 3% of total app revenue in the first half of 2024. While current app revenues are not as lucrative as in top-tier markets, a closer look at Brazil’s short drama landscape confirms the potential for expansion in the region.
In the second half of 2024, statistics from Diandian Data and duanju007.com revealed a whirlwind growth in downloads and revenue for overseas short drama apps in Brazil. In-app purchases have nearly reached $10 million, with over 30 million downloads.
In a tech interview with LuckyShort’s CEO, Deng Xianyao, he remarked, “Brazilian users get hooked on dramas just like anywhere else. They can binge-watch 30 to 40 episodes and don’t mind if the translations or dubbing have errors—they’re still willing to invest their time and energy.”
However, Deng also pointed out that the current enthusiasm in Brazil’s nascent short drama market is largely due to the novelty of the content, and it remains to be seen how it will hold up over time.
For small-to-medium-sized companies in the short drama industry looking to enter this competitive market, Deng believes they face significant challenges despite having high-quality content. These businesses are often unfamiliar with overseas markets, with hurdles such as the cost of localized cloud services and CDN, monetization and distribution strategies, and the implementation of product models. Maximizing the efficiency of short drama delivery and sales will test the strategic insights and market awareness of companies venturing into international markets.
Technological Innovation Driving AI Short Dramas: The Integration of Mlytics’s API Solutions
In the wave of AIGC short dramas, we are witnessing the perfect fusion of technology and creativity. This burgeoning market eagerly awaits industry leaders to drive the next wave of innovation. Faced with challenges such as localized cloud service and CDN costs, monetization strategies, and product model development, Mlytics now can offer innovative solutions for industry pioneers to redefine the market landscape.
While AIGC has reduced content generation costs in short drama production, optimizing content distribution and storage costs remains critical. AI-generated short dramas often include large files, like high-resolution videos and images, which need to be delivered to users quickly and securely. Mlytics’s API solutions enable fast and stable large-file downloads and transfers, ensuring media content reaches global audiences. The API’s segmented download feature further enhances efficiency and success rates when handling large files.
By leveraging API technology for segmented downloads, Mlytics has short drama to reduce buffering times, significantly improving the user viewing experience. When combined with AIGC’s rapid content generation, Mlytics’ content distribution platform enables seamless optimization for global user consumption.
Moreover, Mlytics’ performance monitoring tools track the loading speed and availability of short drama content in real-time, ensuring users have the best possible viewing experience. The integration of AIGC dramas with Mlytics’ large-file download API and Multi-CDN technology boosts production efficiency, accelerates content distribution, and enhances user experience—all while reducing costs and improving security.
In this vast blue ocean of opportunity for short dramas and new AIGC applications, Mlytics is ready to help the short-drama industry redefine the boundaries of global distribution. By harnessing AI and large-file download APIs, we help you discover the opportunities in the global market and navigate the path to success in taking AIGC short-dramas worldwide!
