Chongqing - The rapid development of Chinese video AI models, such as Seedance 2.0, has led to widespread adoption, creating new opportunities in the short-drama market. The deep integration of AI technology with the short drama industry brings new prospects for digital tech companies in Chongqing.

Recently, Chongqing-based digital economy company Bolaa completed a strategic merger with leading domestic short-video company Zhixiang Group. Meng Zhiqiang, former Chairman of Zhixiang Group, has been appointed Chairman of Bolaa New Media, a subsidiary of the merged Bolaa, underscoring its commitment to the AI-driven short-video industry.

Bolaa New Media is a digital tech company driven by AI, with unique advantages in short-video AI technology and applications, serving as a core ecological partner for platforms such as Douyin, China's TikTok. Zhixiang Group, one of the leading companies in short-form drama content production, operation, and distribution in China, is the largest service provider to Bilibili, a Chinese video platform, and a key partner to Alipay, Tencent, and other platforms.

Tong Yi, Chairman of Bolaa, stated that AI animation is the most established application of AI short drama, with a clear profit model. The industry is expected to experience rapid growth with ongoing technological advancements. Over the next three to five years, Bolaa aims to expand its domestic and international markets for AI animation, leveraging its nationwide short-video base, teams, and mature business models.

Interface of an AI-powered animation production platform. (Graphic/Luo Huxin)

AI animation comprises short dramas created with AI for scriptwriting, storyboarding, modeling, dubbing, and video synthesis. With short episode lengths optimized for mobile, fragmented distribution, and AI animation's low production costs, high efficiency, fast-paced content, and clear monetization paths, AI animation is popular.

According to data from DataEye’s JuChacha, a data service platform for the short drama industry, the market size for AI animation is expected to grow from 16.8 billion yuan (2.46 billion U.S. dollars) in 2025 to over 24 billion yuan by 2026. The user base is expected to increase from 120 million in 2025 to over 300 million in 2026, with a strong concentration among 18- to 40-year-olds, who overlap significantly with the audience for live-action dramas. Generation Z shows a strong willingness to pay.

Currently, platforms such as Douyin, Bilibili, and Yuewen Group are actively entering the AI animation market. They increase support through methods such as opening IP copyright pools, launching investment plans, offering exclusive theaters, and raising revenue-share percentages, thereby boosting funding, traffic, copyright, and full-link conversion, thereby accelerating market capture.