AI Micro-Drama Turmoil in China: Oversupply, Backlash, Regulation

AI now 95% of supply but only 0.12% hit rate; 90% of AI contractors losing money. Red Fruit removes 3,522 titles. NRTA regulations take effect July 1. AI face discomfort trending. Actor exodus continues (Hengdian down 75%). New data shows rising compute costs and plummeting revenue, debunking the 'one-click profit' myth. New AI short drama '赚亿修仙' from 恒生活 launching on Hongguo in August. Premium human-made drama '雾潮燃欲' tops charts, reinforcing quality over AI.