Zheshang: Multimodality Will Reshape Content Production and the Commercial Closed Loop; The Industrial Significance of "Post-Journey to the West" Outweighs Short-Term Viewership Data

Zheshang released a research report stating that AI animated short dramas have achieved commercial mass production, and AI satellite-TV long dramas have completed the transformation of the industrial model through "production, review, and broadcast in parallel." According to CCTV Finance data, the domestic AI animated short drama market is expected to exceed RMB 40 billion in 2026, with a year-on-year growth rate of 138%, and the overseas market size exceeding USD 4 billion, accounting for nearly 70% of the overall overseas micro short drama market; Hongguo Short Drama represents the path through which AI animated short dramas have validated advertising monetization and IP serialization. As China's first pure AIGC satellite-TV long drama, "Post-Journey to the West" did not achieve breakout hit status in its premiere single-title data, but its "production, review, and broadcast in parallel + online and satellite co-broadcast" model has opened up the satellite-TV pathway for AI long dramas, with industrial significance outweighing short-term viewership data. Zheshang's main viewpoints are as follows: AI animated short dramas have achieved commercial mass production, and AI satellite-TV long dramas have completed the transformation of the industrial model through "production, review, and broadcast in parallel" According to CCTV Finance data, the domestic AI animated short drama market is expected to exceed RMB 40 billion in 2026, with a year-on-year growth rate of 138%, and the overseas market size exceeding USD 4 billion, accounting for nearly 70% of the overall overseas micro short drama market; Hongguo Short Drama represents the path through which AI animated short dramas have validated advertising monetization and IP serialization. As China's first pure AIGC satellite-TV long drama, "Post-Journey to the West" did not achieve breakout hit status in its premiere single-title data, but its "production, review, and broadcast in parallel + online and satellite co-broadcast" model has opened up the satellite-TV pathway for AI long dramas, with industrial significance outweighing short-term viewership data. All segments of the industry chain benefit: IP, content production, multimodal tools, and distribution platforms all face transformation Based on three dimensionscontent format, per-episode duration, production model, and regulatory review modelAI film and television can be divided into AI animated short dramas, AI online medium-to-long dramas, AI satellite-TV long dramas, and AI animated films. Upstream online literature IP serves as the foundation for AI content adaptation; midstream multimodal models and AI tools significantly reduce filming and production costs; downstream platforms are exploring diversified monetization through memberships, advertising, and revenue sharing. User migration trends are clear, with short dramas and animated short dramas continuously diverting long-video user time, and long dramas facing comprehensive pressure from platforms to production In the first half of 2026, the AIGC industry user scale approached 500 million, up 85.4% year-on-year; AI animated short dramas drove the short drama track to grow 71.5%; Hongguo Free Short Drama's MAU reached 368 million, surpassing long-video platforms such as Tencent Video and iQIYI, becoming the media platform with the highest activity level. Before "Post-Journey to the West," the market generally recognized the traffic explosion of AI animated short dramas Bullish on the content output explosion brought by the AI-ization of short dramas and the industry profit margin improvement brought by cost reduction and efficiency enhancement, but most market participants had not yet uncovered AI-ization opportunities in other entertainment scenarios such as long dramas and films, believing that other media sub-sectors were still far from AI commercialization implementation, mainly due to Non-AI narratives (more consumption-oriented). Although the premiere data of "Post-Journey to the West" did not become a breakout hit, the market is concerned about AI long drama content quality, insufficient user acceptance, difficulty in delivering short-term performance, and also worried about regulatory policy uncertainty. However, we believe the industrial value lies not in the explosive popularity of a single drama, but in the innovation and validation of the industrial model. AI long dramas and AI films open up entirely new incremental space. The first case of regulatory opening up "production, review, and broadcast in parallel" is expected to be followed by breakout hits. Considering the diversification of long-video platforms and satellite TV stations, the profit elasticity of breakout hits is relatively considerable. Therefore, film and television platforms and production companies both have value revaluation opportunities, and one should not be limited solely to the animated short drama track. Driving factors (1) Product catalysts: AI satellite-TV long dramas and AI film projects continue to land, and the "production, review, and broadcast in parallel" model is replicated and promoted; (2) Technology catalysts: Text-to-video models continue to iterate, further reducing film and television production costs; (3) User catalysts: Short drama and animated short drama users continue to expand, and user viewing habits for AIGC content are forming; (4) Policy catalysts: AI content filing and review regulatory frameworks become clear, opening up compliance space for AI long-form content online launch. Recommended targets Focus on (1) AI film and television leader Mango Excellent Media (the first to break the format, with more products with breakout potential expected to launch subsequently); (2) AI films Bona Film Group ("Sanxingdui: Future Past" AI film scheduled for release soon), China Film Group, Beijing Enlight Media; (3) AI film and television tools and production: Kunlun Tech, COL Global Co., Ltd., Wondershare Technology Group, IReader Technology, H&R Century Union Corporation, Ronshin Group, Zhejiang Whyis Technology, Decai Decoration, Shenzhen MTC Co.Ltd, Beijing Jetsen Technology; (4) IP: CHINA LIT, Shanghai Film, Zhejiang Huace Film & TV; (5) Multimodal models: MiniMax (H3 open-source model innovation), Kuaishou, Alibaba; (6) Special note on Nexwise Intelligence China, which cooperates with animated short drama companies under the computing power token factory model (cooperating with Yuxin Electronic Technology on the token factory model); (7) Application direction extensions such as marketing: Easy Click Worldwide Network Technology, MOBVISTA, BlueFocus Intelligent Communications Group; gaming: Giant Network Group, Kingnet Network, Perfect World, Zhejiang Century Huatong Group, 37 Interactive Entertainment Network Technology Group, etc. Risk warnings: AIGC content commercialization realization pace falling short of expectations; uncertainty in AI content regulation and filing policies; multimodal video generation technology iteration falling short of expectations; copyright dispute risks; industry oversupply, intensified competition, and other risks.