AI Micro-Drama Saturation in China

H1 2026 saw 221,900 new AI short dramas on Douyin (0.48% hit rate), 90% lose money. Industry pivoting to 'human touch' and premiumization. NRTA regulations Sept 1. New rural revitalization angle emerging. Li Rang's story highlights creator survival strategies. Hengdian Studios now 80% empty, pivoting to tourist-shot AI short dramas as a survival move.