According to the Huatai Securities Research Report, AI is expected to reshape film and television production costs and IP development models. In the short term, AI is expected to reduce production costs and improve project efficiency through scene generation, visual effects production, and post-processing; in the medium to long term, large-scale production and cross-language content development are expected to broaden the boundaries of IP commercialization and spawn new models of AI native content and production technology services. We believe that film and television companies with high-quality IP reserves, mature production systems and distribution channels are expected to take the lead in transforming technological progress into content production capacity and operational efficiency.

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