China Securities Co., Ltd.: AI+IP helps high growth, anime shows high potential for explosive growth.

China Securities Co., Ltd. released a research report stating that this year, animated dramas have experienced explosive growth, with AI helping to reduce costs and increase efficiency, and IP enhancing growth potential, showing promise for strong growth in high-potential emerging entertainment content. The reasons for the explosion can be summarized as follows: first, thanks to the development of AI, animated dramas have a shorter production cycle and costs compared to live-action short dramas, becoming an incremental market in the micro-drama market; second, the support of traffic from long, medium, and short video platforms drives supply growth. Looking ahead, the company is optimistic that animated dramas not only can achieve their own industry growth, but also can drive growth in the entire film and television industry and derivative markets: 1) High growth in animated dramas comes from AI-powered adaptations of various types of online literature including fantasy and science fiction, enabling high-quality IP to be realized, combined with the complementary relationship between user profiles and live-action short dramas, creating huge incremental space. 2) Animated dramas, with advantages in low cost and short production cycles, are expected to become a testing ground for film and television, progressing from market validation to IP incubation, completing the transition from short dramas to long dramas. 3) Seasonal broadcasting, character or IP account operation amplifies the IP effect, stimulating the development of the animated drama derivative market.