Kunlun Tech, known for capitalizing on trending markets, is making a significant move into the U.S. short drama industry by launching its AI-driven platform, SkyReels, on December 10. This initiative marks a crucial step in the company's global AI strategy and signifies its expanding footprint in the AI entertainment market.
SkyReels, introduced three months ago, is the world's first AI platform integrating video and 3D models for short dramas. It combines script generation, character customization, storyboarding, dialogues, background music, and video synthesis, simplifying high-quality AI video production. Unlike typical content platforms, SkyReels is a creation tool, integrating Kunlun Tech's proprietary models such as SkyScript, StoryboardGen, Sky3DGen, and the innovative WorldEngine, which merges AI 3D engines with video models.
This platform offers powerful tools for professional creators while lowering the barrier for amateurs to engage in AI short drama production, a market with vast commercial potential. In preparation for its U.S. debut, SkyReels has undergone continuous upgrading, including enhanced script templates and a vast library of AI actors. It also features new functionalities like 3D interactive editing, full-body AI motion support, actor training resources, wardrobe personalization, and character customization.
Kunlun Tech plans to enrich SkyReels' content and user experience by collaborating with North American creators and production teams, and exploring partnerships with major media platforms for broader market reach. The rising global trend in short dramas is evident from TikTok for Business' "2024 Short Drama Marketing White Paper," highlighting rapid growth in app downloads and a market scale exceeding billions of dollars. The popularity is particularly pronounced in the U.S., the largest market for short drama, driven by diverse content preferences and consumers' high spending willingness.
Despite the promising prospects, there is intense competition in the AI model space, with companies racing to iterate and outperform. Analysts highlight the challenges posed by high training costs and workforce instability. Notably, Kunlun Tech's overseas revenue accounts for a significant portion of its earnings, signaling its strategic focus beyond domestic borders.
Kunlun Tech also announced a leadership change, with Yan Shuicheng stepping down as the head of the 2050 Global Research Institute to serve as an honorary advisor. A new appointee will soon be announced as the company emphasizes cutting-edge AI model research and project implementation.
As an enduring marathon in AI advancements unfolds, Kunlun Tech is poised for continued evolution, facing its unique set of challenges and opportunities.
