Oriental Securities: Optimistic about AI's accelerated penetration into professional film and television creation and industrialization scenarios, focusing on multi-modal technology-leading and commercialized closed-loop companies

The Zhitong Finance App learned that Orient Securities released a research report saying that it is optimistic that the penetration of AI video in scenarios such as short dramas, commercials, and professional film and television creation will be further accelerated, and that it will gradually be applied in real industries such as industrialization. The significance of SD2.5 is to promote film and television creation into a professional level, and the other is to begin expanding the industrial scene. The bank believes that attention should be paid to vertical multi-modal AI application opportunities, and is optimistic that technological breakthroughs and cost optimization will accelerate the development of industrial trends, driving user growth, payment penetration, and commercialization to the next level. Furthermore, particular attention is paid to companies that are leading in multi-modal technology and are commercialized in a closed loop.

Orient Securities's main views are as follows:

MiniMax H3

The bank believes that MiniMax H3 and Seedance 2.5 jointly raise the lower limit and upper limit of the AI video circuit, and have some differentiation in model positioning: SD2.5 raised the upper limit and continued to expand to high-value film and television tracks and industrialized scenarios; H3 raised the lower limit to fill the supply gap in the existing competitive landscape with ultimate cost performance and open source. The bank is optimistic that the penetration of AI video in scenarios such as short dramas, commercials, and professional film and television creation will be further accelerated, and that it will gradually be applied in physical industries such as industrialization.

MiniMax H3: Raise the lower limit and fill the low end cost-effective multi-modal supply gap. The advantage of H3 is that it has 2K direct output, and the image clarity can meet universal creative needs. 2K is also cost-effective at 0.8 yuan/second. The bank determined that it may be able to replace a large number of skit usage requirements from Seedance 2.0; moreover, H3 was officially open source on August 2. For short drama companies, models can be deployed independently, further reducing computing power costs. Furthermore, H3 has differentiated expressive power in dimensions such as advertising packaging and visual effects, and is expected to accelerate the penetration of AI advertising production scenarios.

Seedance 2.5: Break through the upper limit, accelerate the penetration of professional film and television production and the expansion of industrial scenarios

Unlike Seedance 2.0, which focuses on pan-users and low-end markets, the SD2.5 update focuses on breaking through the ability to create high-quality professional content and further opening up application scenarios and customer base space for AI video models. The main iterative capabilities include: (1) generating 30 s of time, increasing the industry's previous 15-second limit, from a clip to a full-length camera requirement that can be transferred once; (2) strengthening all-round reference capabilities, supporting up to 50 materials, which can avoid the scary valley effect of a thousand people; (3) shooting and rhythm control are all more suited to film and television creation requirements, and can perform functions such as video editing and 3D white film preview based on time stamps, all focusing on increasing the maximum limit of professional creative production. In terms of pricing, the API price of SD2.5720p is 42 yuan per million tokens, an increase of 50% compared to 28 yuan for 2.0720p. Although there is a certain increase in price, SD2.5 is positioned as a professional film and television production. Labor costs and time costs in these scenarios are the main costs, so even if the price increase is still within an acceptable range.

Taken together, the bank judged the significance of SD2.5. One is to promote film and television creation into a professional level, and the other is to begin expanding industrial scenarios, such as generating video guidance for engineering operations, building an intelligent driving training environment, and helping robots predict motion trajectories. The video model is embedded in real production processes, which is expected to accelerate implementation and application in various physical industries such as industrial manufacturing, physical intelligence, and smart driving.

Risk Alerts

AI technology iteration falls short of expectations, AI application implementation falls short of expectations, AI commercialization falls short of expectations