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How China is using AI – and state funding – to transform the micro drama industry

In China, micro drama companies are harnessing AI to create shows at jaw-dropping speed and cost – often with the help of lavish subsidies

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A still from the 2024 Chinese micro drama ‘The Divorced Billionaire Heiress’. China’s micro drama producers are now rapidly integrating AI tools to make production of new shows faster and cheaper. Photo: Handout
Yeon Woo Lee

Vigloo, a South Korean micro drama production company, has gone all-in on artificial intelligence this year, betting that automation can fundamentally reshape how content is made.

The company has begun spending roughly 30 per cent of its budget on AI-driven workflows, and the change is already having a dramatic impact. It can now produce a show in just one month rather than three, and at one-fifth of the cost.

That is not only allowing Vigloo to release far more shows, but also to experiment with a broader range of genres and styles. The firm is even starting to let AI agents handle core tasks like writing scripts, which are then reviewed by human producers.

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Yet Vigloo still feels under pressure. The competition from China’s vast micro drama industry is getting ever more intense, as the country throws its weight behind AI-driven content, according to Neil Choi, the company’s CEO.

China has pioneered the creation of micro dramas – also known as vertical dramas – a new entertainment format that is often dubbed “TV for the TikTok generation”. The soap opera-like shows are divided into dozens of episodes just a minute or two long, which usually end with a shocking cliff-hanger to keep viewers hooked.

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The format, which took off during the Covid-19 pandemic, has already transformed China’s entertainment industry, with the shows reaching an estimated 660 million domestic viewers in 2024. And it is rapidly gaining traction globally as well.
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