Huaxin Securities: AI enhances content and media to maintain media industry recommendation ratings

The Zhitong Finance App learned that Huaxin Securities released a research report saying that AI can undertake industrial production of film and television, and can also gradually take on the emotional needs and emotional comfort of the public. As a container for human emotions, whether it is pure AI or live action movies and TV dramas, it still needs moving content works. Along with the continuous iteration of AI's multi-modal capabilities, the launch of ByteDance's SeedAnce2.5 to MiniMax H3 is expected to drive AI feature film creation (Seedance 2.5 indicates that it will continue to explore longer coherent narratives in the future), while the world is driven by models The development of spatial intelligence and physical AI and aggregation platforms has also brought new additions to the channel side. New media distribution and media applications are expected to enter a new round of creative cycle and industry cycle, maintaining recommended ratings for the media industry.

The main views of Huaxin Securities are as follows:

AI applications are expected to enter the commercialization period in '27, AI is expected to enhance the new supply of content and channels

The technological revolution changes factors of production, and in turn changes production methods. The value of the industrial age depends on its scale effect, the value of the mobile Internet era looks at its network effect, what does the value of the AI era look at? The industrial age focuses on the scale of production, and the mobile internet focuses on the scale of connections. The more connected nodes, the greater the network value. The Internet reduces the cost of connection to close to zero, and the size of users has become a reference factor for the valuation of platform companies; from an economic perspective, what is the new growth mechanism for AI? The AI era looks at intelligent compound interest. In the first stage, general artificial intelligence has become social infrastructure (token economy that can be used on a large scale), and in the second stage, AI moved from chat assistants to the stage of smart device development to solve real-world problems. The third stage is the emergence of applications, from aggregation platforms to vertical applications. The global AI aggregation platform market is expected to reach 18.9 billion US dollars in 2030, the global AI film production market is expected to reach 18.9 billion US dollars in 2032, the global AI game market is expected to reach 12.3 billion US dollars in 2034, and the global AI media entertainment market is expected to reach 20.9 billion US dollars in 2034. The market size in various segments highlights the increase in enterprise business development.

After AI deployment became the norm in 2026, AIAgent agents became standard and application layer carriers. Looking at mission results in 2027, commercialization of AI applications is expected to usher in new development in 2027. From AI long content to AI movie variety shows to AI games, the supply of complete AI movies and TV games is expected to expand, and high-quality dark horse AI productions can be expected. The AI drama comic circuit has entered the survival of the fittest stage. The AI content industry competes to see “quality” as the next stop. High-quality content companies are expected to use AI to be re-evaluated in the second wave of content.

Entering 2027, AI commercialization becomes a new expectation How can AI content be re-evaluated? New Domestic Demand, New Prologue

The AI era is a double-edged sword for the content generation industry. The low threshold for content creation will dilute the moat for middle and lower content companies, and will also create a number of potentially high-quality content works. In other words, the threshold for IP content is being raised, and the “inflation” of AI content supply will also boost the competitiveness of high-quality IP content companies; the AI era's value to the content industry lies in the continuous reuse of assets and declining marginal costs. At the same time, long AI dramas are also expected to bring “cultural stamina” (The People's Daily review indicates the time required for cultural activities such as watching movies and appreciating art, attention, patience, culture Stamina is not just a consumable item; it is also a recycled product);

The competitiveness of content companies will shift from “production capacity” to “assets” and the ability to operate systemically rather than be driven by a single point of inspiration. Games in the content sector, the real-time and interaction of AI video games is expected to enable games to reach a new level. You can follow AI games (Kaiying Network, Perfect World, Gibbit, Yao Ji Technology, Station B), AI content dramas/national anime (Ruyi Film, Huace Film and Television, Perfect World, Aofei Entertainment, CITIC Publishing, Rongxin Culture, etc.), AI platforms/communities/e-commerce (Jihong Co., Ltd., Ali, Station B, etc.).

Content such as film, television, and games in the media is the core supply side of the experiential economy. Together, the three are shifting from “functional consumption” to “experiential consumption,” driving new domestic demand with a long chain and high multiplier effect, which is expected to become one of the main structural engines in 2027. Film and television have been upgraded from a “box-office economy” to a “diversified experiential consumer ecosystem”, a digital culture engine with a “ripple effect” of gaming equipment. From AI infrastructure to content IP to radiation driving cultural tourism, the media is expected to transform from “cultural soft power” to “new economic support.”

How to revalue the AI channel as it enters 2027?

Online channels are divided into video and AI aggregation platforms. On the video side, AI generation is not only a one-time content dissemination and access tool, but has begun to become a content system that can respond in real time and grow continuously. In the AI era, the global AI aggregation platform market is expected to reach 18.9 billion US dollars (CAGR 22.3%) by 2030, and online channel AI aggregation platforms are also growing.

Offline channels are divided into the cinema line and exhibition experience economy. Apart from traditional box office, will the entrance value of the cinema line be replaced in the AI era? The bank believes that in the future, cinemas will not only be a single film screening space, but a new gateway to intelligent cultural experiences that can be explored.

What hasn't changed in the AI era? It is the resonance and curiosity of human emotions, and offline channels are expected to accept it. The example of the movie “The Cow Lai” also highlights that the theatrical scene is also an amplifier of emotional container and value. Another representative of offline channels is the exhibition section. In the AI era, physical AI and spatial intelligence are also gradually expanding from exhibition displays (you can focus on Ruyi Film, Bona Pictures, Shanghai Film, Hengdian Film and Television, Fengyuzhu, Shunwang Technology, Miao Exhibition, Vantuo Digital Innovation, etc.).

AI empowers new supply to meet the emotional needs of different groups The media is expected to enter a new supply cycle in 2027

As a dual-driving sector for domestic optional content consumption and AI applications, the development of technology also continues to empower the supply of new content works. From the PC desktop era to the mobile internet traffic economy era and into the AI Tokens economy era, AI tools continue to iterate and empower content creation. From “Journey to the West” on Anhui TV in July 2026, “Journey to the West” landed on Hunan TV and Mango TV in September, to the AI film “The Future Past of Sanxingdui”, to “The Girl Who Was Cut”, “Kitan: The Lost Ruins of Paper Blade”, “Share-leased 501” and “Song with Weapons”, the diverse supply of AI content can gradually be recognized and approved by the public Content consumption needs of different groups.