A 霞光社 feature republished by Huxiu AI describes how AI-generated short dramas are displacing live-action overseas productions. Cecilia, head of the US-based 疯狂石头影视, said live-action overseas short-drama shoots have shrunk at least 30% to 50% year on year since Q2 2026, while actors recounted being told they had been replaced by AI; director Mandy said she moved from Atlanta to Los Angeles in June as opportunities dried up. The piece cites DataEye figures that Jiuzhou Culture's AI and animated dramas account for 95% of its total capacity, and that more than 80% of new content on Kunlun Tech's DramaWave is AI-generated, and it reports that a change to TikTok's revenue-share coefficients in July and August sharply cut payouts for many AI short-drama producers. It also notes that Latin America has become a strong market, with platforms such as PineDrama, ReelShort and DramaBox adding local production.