Institutions: AI technology drives the shift in film and television content supply

Longue Dragon Securities believes that the end-to-end AI film and television creation tool has officially been launched, providing a practical, engineering-based pathway for industrialized cost reduction and efficiency improvement in AI short drama production. At the same time, the release of a multimodal large model has achieved performance breakthroughs in audio-visual understanding, multilingual interaction, and real-time generation, delivering stronger underlying support for AIGC content production.

Guoxin Securities believes that entertainment demand remains strong, and AI technology is driving the supply of film and television content to shift toward new directions. 1) Looking back at 2025 box office performance, high-quality content such as “Nezha: The Demon Child’s Havoc in the Seas” and “Zootopia 2” both achieved strong results. 2) In the short term, from the perspective of film scheduling, currently in the 2026 slate there is a lack of top-tier IP films and effects-heavy blockbusters. In the short term, the supply side will face pressure, and film theater chain companies have relatively high operating leverage; if revenue declines, it will have a significant impact on profit margins. 3) From a medium- to long-term perspective, breakthroughs in AI video technology at home and abroad will make AI video models industrialized tools that address the issues in AI film and television production—namely inconsistencies, violations of physical logic, audio-visual desynchronization, and the lack of a director’s control authority—and will greatly reduce video generation costs and substantially shorten production cycles. This is expected to improve the supply of short-form video such as AI webcomics and short dramas, as well as long-form video such as TV series and films.