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The Chinese Streaming Industry Is Being Gutted by AI-Generated Shows

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Why This Matters

The rise of AI-generated content in China's streaming industry is transforming entertainment production, creating a multibillion-dollar market while raising concerns over job security and intellectual property rights. This shift highlights the growing influence of AI in content creation, which could reshape industry standards and consumer experiences worldwide.

Key Takeaways

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Earlier this year, TikTok’s Chinese owner ByteDance released the latest version of its Seedance AI video generating tool.

Impressively photorealistic footage of Will Smith battling a ferocious spaghetti monster or Brad Pitt and Tom Cruise engaging in hand-to-hand combat sent Hollywood into a frenzy, highlighting ongoing concerns over the status of human creativity in the age of AI.

It’s not just Hollywood struggling to adapt to a new reality. As the New York Times reports, Chinese directors, actors, and crew share these concerns. They’ve watched as generative AI has caused the number of “microdramas” — ultra-short-form serialized clips optimized for mobile viewing — being produced to skyrocket. The format has caught on like wildfire in China, quickly turning into a massive multibillion-dollar business.

According to the paper, some 50,000 new AI-generated microdramas were added to Douyin, China’s TikTok in March alone. Many of them are racking up hundreds of millions of views, in a growing AI-based content factory estimated to be worth more than $3 billion this year. (The microdrama industry overall is expected to exceed $16.5 billion by the end of the year.)

In other words, it’s no wonder that those who make their living in the country’s entertainment industry are crying foul, especially as controversies over the unlicensed use of the likenesses of Chinese entertainers continue to swirl. (Cases about replacing employees with AI are also currently making waves in the Chinese court system.)

Actor Li Jiao told the NYT that he watched as the number of available roles dried up. He suggested that the hype around AI may be at least partially to blame.

“It’s like it was raining, and then suddenly the rain stopped,” he said.

Microdrama director Wang Yushun admitted to the newspaper that he was making extensive use of AI, lamenting that he had to lay off employees and citing waning demand for live-action productions.

Meanwhile, competition in the industry is ramping up as AI massively lowers the barriers to entry.

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