Orient Securities: The first long-running AI drama “Journey to the West” is on file and optimistic about the deepening application of AI video models

The Zhitong Finance App learned that on August 31, Orient Securities released a research report saying that on August 31, the first AI drama “Journey to the West” to be broadcast on the stars in China was scheduled. The drama was provided with AI technology support by ByteDance Seedance 2.0/2.5. All AI participated in generating content, and adopted an innovative model of “while producing, reviewing, and broadcasting”. 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 industry 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:

The first long-running drama to verify that AI video model capabilities have reached the stage of deep application

The first season of the mythical-themed AIGC seasonal drama “Journey to the West”, “Huaguo Mountain Edition” is 40 minutes long each, with a total of 5 episodes. Recently, it was launched on Mango TV and launched on Hunan TV's Gold Program. The bank believes that the release of “Journey to the West” verifies the viability of AI video model capabilities in deep application: 1) the length of time, 40 minutes of storytime, and the degree of completion of the AI video model in terms of core content indicators such as character consistency, plot continuity, and light and shadow texture; 2) channel dimension, AIGC content first entered the TV gold file, changing the traffic business of AI dramas using short videos and online platforms as the main battleground, which meant that mainstream broadcast channels accepted AIGC content.

AIGC's low-cost, rapidly generated, and efficient model provides more flexibility on the supply side through “side-review and broadcast”

The entire “Journey to the West” series is 100% AI generated. The production cycle is about 4 months. The cost is only one-tenth of the reality drama, and it is not limited by the schedule of real actors, making the process model more flexible and adjustable. Currently, the “sideline and broadcast” model is not open to all series. The State Administration of Radio, Film, and Television is only piloting it in genres such as series, sitcoms, and unit dramas. AIGC content modification costs are low, generation speed is fast, and audience opinions can be quickly fed back, making the series more in line with the requirements that the public is happy to hear. Currently, the overall supply of long-form dramas is shrinking. Only 115 series were approved for distribution in 2024, a decrease of about three-quarters from 429 in 2014. AIGC content “sideline broadcast” can also provide new growth and flexibility for the shrinking film and television supply.

The bank believes that emphasis should be placed on AIGC downstream development, and that AI video model technology, policy, and scenario resonance drive downstream prosperity

On the technical side, over the past 26 years, with the release of Seedance 2.0, Keling 3.0, MiniMax H3, and Seedance 2.5, the upper and lower limits of domestic AI video model capabilities have been improved together, penetrating comics, and professional film and television creation, and laying the technical foundation support; on the policy side, 21 new radio and television policies were released in August '25, and “Journey to the West” was the first series broadcast on the sidelines, which meant that policy-side adjustments began to be reflected in specific projects. Scene testing, I am optimistic about the emergence of AIGC benchmark content, and drive the normalization of more high-quality works online.

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