Hengdian turns film sets into tourist drama shoots as AI short videos squeeze live-action crews

Hengdian, China’s massive film and TV production hub, is repurposing part of its studio capacity into short drama experiences for tourists as AI-generated productions take over the short-form market. For around 300 yuan, visitors can dress in costume, follow a director’s cues, and receive a personalized short video within hours. Packages range from 218 yuan for a single-person vertical short to 388 yuan with full styling, while group mini-film packages run from 3,800 to 12,000 yuan. The shift comes as live-action production in Hengdian contracts sharply. According to figures cited in the report, AI short dramas accounted for more than 95% of total short drama output in the first quarter of 2026, while some studios saw vacancy rates near 80%. A separate field report said short drama launches dropped by three-quarters year over year, and live-action short drama filings fell 63%. The economics are driving the switch. A 50-episode live-action short drama costs at least 300,000 to 500,000 yuan and takes half a month to a month to shoot. AI production cuts that to 80,000 to 200,000 yuan and 1 to 5 days for delivery. Hengdian Film’s own first-quarter 2026 results also showed revenue down 50.36% and net profit down 88.30%.