China’s micro-drama industry has evolved from a niche internet phenomenon into a significant economic sector characterized by rapid production cycles and extensive regional investments. Central to this growth are specialized production hubs that repurpose idle infrastructure to meet the demand for fast, cost-effective filming.

In Guangfeng district, Jiangxi province, a former cigarette factory spanning over eight hectares has been transformed into a dedicated filming base featuring more than 360 sets, including period streets, modern offices, hospitals, and European-style villas. This facility can accommodate up to 40 crews and over 2,000 cast and crew members simultaneously, enabling multiple productions to proceed in parallel. The hub generated an output value exceeding 500 million yuan ($74 million) in 2025.

Producers like Pang Daoming, based in Shanghai, leverage these resources to complete productions in remarkably short timeframes. Pang recently produced a five-day micro-drama set in China’s Republican era, utilizing dozens of background actors with daily wages typically between 100 to 300 yuan. Since entering the micro-drama sector in mid-2023, his company has produced roughly 70 to 80 shows.

The rapid production model has created new employment opportunities for local residents. Zhou Tao, who initially ran a small shop near the Guangfeng hub, began working as a background actor and eventually became a coordinator linking actors to roles. At peak times, Zhou reported working on set more than 20 days a month, earning between 8,000 and 10,000 yuan. Similarly, younger participants like 19-year-old Ding Junyan have found acting roles through local associations, gaining minor but frequent parts and earning modest incomes.

The Guangfeng Actors Association oversees over 1,000 registered performers, most from the region, offering coordination, training, and dispute resolution services. Background actors’ pay varies according to role complexity, with supporting parts sometimes commanding as much as 1,000 yuan daily.

Similar production models have taken hold elsewhere, including Hengdian World Studios in Zhejiang province, which saw a surge in vertical-screen micro-drama crews in early 2025. In Hangzhou’s Linping district, the Linying Factory serves as an integrated filming base with multiple scenes and comprehensive support facilities. Across these locations, rapid turnaround and cost control remain priorities for production teams.

However, the industry faces mounting disruption from generative artificial intelligence. AI-assisted production has shortened timelines and lowered costs, impacting employment for background actors and mid-level crew members. While some industry professionals acknowledge AI’s role in enhancing efficiency and quality, there is skepticism about its ability to fully replace live performers in the near term.

Producers like Fang Liqi of Damahou, a company active in Guangfeng, emphasize the complementary nature of AI and traditional methods. Fang’s firm produced over 120 micro-dramas in 2025 and plans to increase output to around 200 this year, including AI-generated projects. He noted that AI-produced dramas can cost significantly less than live-action ones, with a modern AI drama priced at just over 100,000 yuan versus 300,000 to 400,000 yuan for comparable live productions.

Some industry representatives caution against overestimating AI’s impact. Wei Qintao, responsible for quality at production company Hongguo, described concerns about AI as “over-worried or over-interpreted,” asserting that live-action dramas remain the industry’s foundation. Nonetheless, he acknowledged uncertainty for roles involving costumes, makeup, lighting, and camera operation as AI adoption grows.

Academics stress the continuing importance of human creativity, with Tsinghua University professor Shen Yang highlighting aesthetics and taste as central to future content development.

Beyond domestic markets, producers are pursuing international audiences, particularly in Southeast Asia. Pang’s company operates an overseas app offering Chinese micro-dramas dubbed into regional languages, boasting more than 100,000 paying users. According to app data analytics, revenue from short-drama apps globally reached nearly $700 million in the first quarter of 2025, with Southeast Asia contributing substantial growth in downloads.

Looking ahead, companies like Pang’s plan to expand local production overseas by creating micro-dramas featuring local actors and settings tailored to regional audiences in countries such as Indonesia and Thailand. This strategic shift aims to deepen market penetration beyond China while maintaining the high-volume, efficient production model that defines the domestic micro-drama industry.