According to a May 31 report by Yicai, Fengxing Company General Manager Li Tao revealed that after the Chinese New Year, the firm optimized operations and let go of over 100 employees. Most remaining staff transitioned to AI production. At its peak, Fengxing produced up to 106 live-action short dramas per month. That has now dropped to an average of just 30 AI-generated shorts monthly, causing revenue to plummet sharply.
Major Players Exit Live-Action Filming
Several prominent companies are following suit. Chengdu-based Zhongdu Technology, which claims to be one of the top three short drama producers in the city, announced it will fully exit live-action filming after May 30, 2026. Other firms, including Zhengzhou Tianqiao Short Dramas and Zhejiang Jiaxing Jiuzhou Culture, are also redirecting resources toward AI short dramas.
Actors Hit Hardest, Especially the Little Guys
The downturn has devastated performers, particularly minor actors without strong financial backing or connections. Even some who recently gained fame now find themselves without roles.
Actress Chen Yuxi entered the industry in 2023. By the end of 2025, she had filmed over 20 short dramas, accumulated tens of thousands of fans on Hongguo, and seen her daily pay rise from 800 RMB to 3,000 RMB. At her busiest, new shoots were lined up before she even left her hotel.
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