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NBC News reported sharp declines in live-action filming at China's largest microdrama production site. The shift follows widespread adoption of AI tools that cut costs by five to eight times. The $14 billion industry released about 100,000 titles in the first quarter of 2026.
anthropology.netProduction volume at the Dazhi filming base outside Zhengzhou has fallen 60 to 70 percent from last year, according to the base manager. NBC News counted only four crews working at the 200,000-square-foot complex late last month, down from as many as 15 crews shooting simultaneously a few months earlier.
The decline stems from policy changes early this year at the Hongguo platform that discouraged external partners from producing live-action series.
Actor Liu Yuan, 45, said many crews halted work and shifted to AI, leaving his schedule nearly empty until recent weeks. Ninety-five percent of roughly 100,000 microdramas released in the first three months of 2026 were produced entirely by AI, the state-run People’s Daily reported.
Director Gao Qingge said AI cuts production costs by five to eight times compared with live-action shoots while eliminating weather delays.
The Chinese streaming company iQIYI introduced an AI performer database in April 2026 that lets actors authorize digital doubles. That same month Hongguo removed the AI series “Peach Blossom Hairpin” and penalized its producer after complaints that it used users’ likenesses without consent. China has required clear labeling of all AI-generated content since last year.
Wu Hongbin, the Dazhi base manager, said he expects human productions to recover because viewers prefer real performers over AI characters that trigger an “uncanny valley” reaction.
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