“A category that's not technically AI that saw a ton of growth is short dramas. They're making hundreds of millions of dollars now, and I've met several startups that are largely using AI to either fully generate or edit these short dramas, so they can make them at much lower cost and spend more on marketing to distribute them.”

Short-drama apps do hundreds of millions — AI collapses production cost so you outspend on marketing

Short-form drama apps are quietly a hundreds-of-millions-of-dollars category. The startups winning are using AI to generate or edit the content itself, collapsing production cost so they can pour the savings into paid acquisition. The leverage isn't in the app — it's in the cost structure that lets you dominate distribution.