New Policies Boost AI-Powered Short-Drama Industry

Shanghai has announced new policies to boost the AI-powered short-drama industry, making Xuhui District one of its core AI+ short-drama clusters.

The Shanghai Administration of Culture and Tourism launched eight policies to boost the industry at the SMC Shanghai Foundation Model Innovation Center in Xuhui, one of China's first large-scale AI model incubators and accelerators.

Shanghai will optimize computing power and algorithm supply, support high-quality content creation, and develop a technical support system for AI+ short-form dramas under the new policies.

It will simplify content approval procedures and create a one-stop service center. The agenda also includes building industry partnerships to increase cultural exports and bolstering copyright protection.

Additionally, it will create key industrial zones for AI-driven short dramas.

Xuhui, a major AI hub, houses around 1,700 AI enterprises and 60 percent of Shanghai's large language models. Cultural and creative industries in the district exceed 150 billion yuan (US$22 billion).

Xuhui's AI-powered short drama policy package offered substantial financial incentives to attract domestic and foreign businesses and professionals.

It aims to attract and cultivate more than 40 high-quality AI-powered short drama enterprises within three years, incubate over 200 startup teams, and produce more than 1,000 original works.

"We are greatly encouraged by the supportive policies for our industry. This is a transformation for the entire sector and a huge opportunity, and many Chinese companies are well-positioned to seize it," said Zhou Yuan, CEO of Content Republic Limited, a Chinese company specializing in the production and distribution of short dramas for overseas markets.