25Q4 | AI Motion Comics & the Next Wave of Short Dramas — Insights from Daogu’s Founder

Lucas Zhang, CEO of Daogu Entertainment and co-founder of Dramago, delves into the evolution of short dramas, highlighting their distinct characteristics compared to traditional media. He emphasizes their low production costs, rapid pacing, and unique distribution model that leverages high-impact moments to engage viewers. Zhang discusses the global potential of AI-powered motion comics and the importance of AI as a tool for creators. He also touches on the monetization challenges and opportunities for short dramas, suggesting that AI can enhance efficiency without replacing human jobs. The conversation concludes with insights into the diverse market needs met by various drama formats.

• Lucas Zhang elaborates on the evolution of short drama from various entertainment formats, highlighting its distinct characteristics compared to traditional film and television.
• Short dramas have transitioned through several phases: short video era, live streaming era, and now into a unique form of entertainment.
• Key differentiators include lower production costs, faster pace, and episodes lasting one to three minutes.
• The dissemination model of short dramas is fundamentally different from traditional media, focusing on high-impact moments and unique promotional methods.

"My understanding of short dramas is that they are also a type of film and television product. However, what distinguishes them from traditional long dramas and movies? First, the production cost is low. Second, the pace is fast. Third, they are presented in episodes lasting one to three minutes."

• This quote underscores the fundamental differences in production cost, pacing, and episode length, setting short dramas apart from traditional media.

"The core disruptive model of short dramas refers to their promotional methods which are different from the original. They focus more on high impact moments whether through advertising or distribution, allowing users who have never seen the short drama to engage with it through its highlights and clips."

• The quote highlights the innovative promotional strategies of short dramas, emphasizing user engagement through impactful moments and clips.

• Daogu Entertainment has expanded its scope from domestic markets to international, adapting its content and distribution strategies accordingly.
• The company has evolved from traditional comic dramas to AI-powered and short dramas, indicating a strategic shift towards global appeal.
• This transition involves adapting various aspects of production, from screenwriting to distribution, to cater to a broader audience.

"We have basically transitioned from domestic to overseas, from screenwriting to production, filming, post production and distribution, as well as the conventional comic dramas of the past."

• The quote illustrates the comprehensive international expansion strategy, covering all stages of content creation and distribution.

• AI is increasingly becoming an essential tool in the creation and distribution of short dramas, rather than being perceived as a threat.
• AI-powered motion comics represent a new frontier in the short drama landscape, offering novel storytelling possibilities.
• The integration of AI into the production pipeline has potential for enhancing user acquisition and long-tail revenue.

"Lucas also shares candid insights on user acquisition, long tail revenue and why AI is becoming an essential tool, not a threat for short drama creators."

• This quote emphasizes the positive role of AI in enhancing the creative and economic aspects of short dramas, contrary to the perception of AI as a threat.

• There are significant future opportunities for creator platforms and intellectual property (IP) owners in the short drama space.
• The global potential of short dramas provides a fertile ground for innovation and expansion for creators and IP holders.
• The unique attributes of short dramas, combined with technological advancements, present new avenues for monetization and audience engagement.

"The rise of AI motion comics and their global potential future opportunities for creator platforms and IP owners."

• This quote highlights the promising future and expansive opportunities available to creators and IP owners in the evolving landscape of short dramas.

• Short dramas are designed to be more concise, compressing traditional two-hour dramas into shorter formats.
• The episodic model fragments user time, making it easier for users to consume content in smaller segments.
• Users perceive less commitment due to shorter episodes, often deciding to watch quickly and move on.
• Short dramas are characterized by faster pacing and less complex plots, requiring minimal thought from viewers.
• These dramas redefine viewing habits by allowing users to watch continuously without deep engagement.

"The user's perception and pain points are not as strong. For example, when they see the progress bar, they might think I can watch this episode in two minutes and just swipe past it."

• This quote highlights how short dramas are structured to minimize user commitment, making it easier for viewers to engage without feeling overwhelmed.

"Short dramas rely on their plots which do not require deep thinking, emotional manipulation or constant back and forth tension, allowing users to continue watching without realizing it, even in a mindless state."

• This explanation underscores the simplicity and ease of consumption that short dramas offer, aligning with modern viewing habits.

• Drama Go focuses on domestic short drama distribution, production, and social media management.
• The development of an app is seen as a means to create long-term user value through subscriptions.
• There are challenges in the overseas market, prompting strategies to integrate social media for revenue.
• The app primarily features Chinese-translated dramas and some dubbed content, catering to specific themes.

"The Drama Go product is ours. This product is our own enterprise, originally more focused on domestic short drama distribution, production and social media management which has progressed well."

• This quote outlines the foundational focus of Drama Go and its evolution towards a more app-centric approach.

"While creating your app, consider incorporating your social media accounts into some overseas long tail platforms for revenue because there are many English dramas overseas mainly focused on CEOs and romantic themes."

• This suggests strategic integration of social media to tap into overseas markets and revenue streams.

• Drama Go utilizes comprehensive data on translated dramas to guide future content placement and selection.
• There is a focus on reducing content costs, which poses a significant challenge.
• AI-driven plots and comic dramas are seen as potential growth areas in the anime market.
• Exploration of dynamic comics is considered a future opportunity, both in China and internationally.

"Currently we have a comprehensive range of translated dramas, so we may head in that direction. Through more exploration and various methods. We are trying to find ways to reduce our content costs, which is also a challenge we are facing."

• This quote indicates the strategic direction towards leveraging translated dramas while addressing cost challenges.

"I believe that AI comics and novels or so-called comic dramas can find a huge development space in the entire anime market."

• This suggests optimism about the potential for AI-driven content to expand within the anime and comic markets.

• Short dramas, like anime and short films, are increasingly reliant on the internet and adaptations of novels to enhance their quality and audience engagement.
• The quality of the source novel and its adaptation significantly impacts the success of short dramas, influencing strategic and operational outcomes.
• Short dramas face challenges in creating lasting value post-consumption, unlike traditional films that can generate ongoing revenue through repeated viewings.

"Once I finish filming, it goes online, and once consumed, it actually has no subsequent value. It is not like the Matrix, where people might watch it repeatedly and streaming can still generate income."

• This quote highlights the transient nature of short dramas' value, emphasizing the need for innovative monetization strategies.

• To enhance monetization, two main strategies are proposed: attracting initial readership and leveraging advertising unlocks, and finding strategic partners for regional adaptations and regular monetization.

• Global distribution requires tailored translations and dubbing, with each country necessitating unique adaptations, which can affect the value of older content.

"First, when our drama comes out, we must first attract readers, then move into advertising unlocks. The second is to find good partners in various countries and regions, bringing some conventional platforms over for regular monetization."

• This quote outlines the dual strategy for monetizing short dramas, focusing on initial engagement and strategic partnerships for broader distribution.

• AI is becoming increasingly integral to various content creation processes, including AI comic dramas, AI live-action dramas, dubbing, translation, and personal task management.
• AI's role is seen as a crucial technological resource that enhances efficiency and output, making it indispensable in the modern landscape.

"I believe AI is an essential human resource technology for the future, so it is already indispensable now."

• This quote underscores the necessity of AI in future technological landscapes, emphasizing its growing importance.

• Concerns about AI replacing human jobs are addressed by highlighting AI's role in enhancing productivity rather than causing unemployment.

• Historical parallels are drawn to the 1980s, where technological advancements led to workforce shifts but ultimately increased efficiency and economic output.

"For example, we used to need 10 people to complete a task, but now two people can do it. With AI, do you mean that eight people are still needed? No, the other eight people need to learn this workflow together."

• This quote illustrates how AI changes workforce dynamics, emphasizing the need for skill adaptation rather than job displacement.

• AI is transforming the design industry, particularly for art designers, by enhancing efficiency in character design and output.
• Designers need to adapt by learning to use AI tools, as their foundational skills in art, aesthetic sense, and vision remain crucial.
• AI is not seen as a threat to employment but as a facilitator of more efficient work processes.

"If you are a designer and your original role was as an art designer, AI might replace you in that design process and you need to learn how to use it."

• AI's integration into design necessitates that designers adapt by acquiring new skills to stay relevant.

"AI can help your business improve the efficiency of character design and output."

• AI enhances productivity and efficiency in creative processes, benefiting businesses.

"The greatest value of AI lies in facilitating efficient work, and you need to accept this."

• AI's primary advantage is in streamlining work processes, requiring acceptance and adaptation from professionals.

• Individual creators face challenges in earning money due to issues with copyright and intellectual property (IP).
• Platforms can assist creators in navigating copyright challenges and leveraging AI technology for content creation.
• AI products offer learning opportunities that can help creators produce and sell content more effectively.

"What individual creators lack is first, copyright and second, the entire IP of the work."

• Creators struggle with ownership rights, which are crucial for monetizing their work.

"Our AI technology can be shared with enterprises."

• AI technology can be a collaborative tool for businesses and creators, enhancing content production.

"Can you compete for their novel copyrights through these relatively mature AI products?"

• AI products provide opportunities for creators to engage with copyrighted material and potentially create new content.

• The future of short dramas and vertical screen dramas is driven by diverse user needs and ideologies.
• Local, translated, and dubbed dramas cater to various audiences, fulfilling different spiritual and entertainment needs.
• Content creators are encouraged to focus on fulfilling the diverse spiritual needs of the market.

"Whether it is short dramas, AI dramas, comic dramas, local dramas, translated dramas, or dubbed dramas, they meet the needs of different users, different processes, different ideologies, and different understandings."

• Diverse content types are necessary to meet the varied preferences and spiritual needs of audiences.

"We are looking at content that fulfills users spiritual needs."

• Content creation should aim to resonate with the spiritual and emotional needs of the audience.

• Short dramas are accessible to creators without formal film education, as they stem from web fiction written by everyday people.
• Successful short dramas often follow a simple formula: one protagonist, one goal, one storyline.
• The short drama industry offers significant financial opportunities for creators who can effectively engage with this format.

"Short dramas partly grew out of web fiction and web fiction was written by everyday people."

• The accessibility of short dramas allows creators from diverse backgrounds to participate in the industry.

"Many hit short dramas in China were created by grassroots writers and the core formula is simple."

• Simplicity in storytelling is key to the success of short dramas, making it an approachable format for new creators.

"If you want to step into this multi billion dollar short drama industry, just search short drama writing 101 for everyone on payhip."

• There are educational resources available for those interested in entering the lucrative short drama industry.