Guotai Junan: AI Video Popularity on the Rise, Film and Television Industry Embracing Change Nodes

Guotai Junan released a research report stating that the startup company Lightricks launched an AI-driven video creation and editing software, LTX Studio, on March 1, 2024. It includes a complete set of tools for video production, including automatic script writing tools, scene control tools for adjusting multiple cameras, tools for ensuring character consistency, camera control, and one-click editing. These AI tools for video production workflows help improve the efficiency of film and television content production while reducing costs in various areas. The video production workflow greatly benefits from AI efficiency. The core of LTX Studio is based on AI video models, empowering various aspects of video generation. Users input a prompt in LTX Studio, which the application then divides into numerous shots, each shot lasting a few seconds, before linking them together to create a complete video. Users can change scenes, styles, weather, settings, and locations by entering commands. Through the lens editor provided by LTX Studio, users can rename shots and adjust settings such as video effects, action intensity, camera angle/displacement, duration, and character dialogue. Additionally, users can change characters' appearance and style using independent character tags. The optimization of the video production process addresses the short length of content generated by AI video models, making AI applications in video content creation more effective. Strong expectations for the implementation of AI video; UGC content has already benefited. The broadcast of the AI-assisted animated film "Qianqiu Shisong" on CCTV on February 26, 2024, marked the beginning of the large-scale screening of content generated with AI video tools in China. The impact of AI video models on the film and television industry includes two aspects: 1) For PGC content, the focus is on cost reduction and efficiency improvement, with significant changes throughout the film and television production process; however, due to factors such as licensing and final approval, content directly generated by AI still requires processing by professional organizations to be screened. 2) For UGC content, a number of AI short films have attracted significant attention and views both domestically and internationally. The relatively relaxed control over content quality and screening makes UGC content the first to benefit from the development of AI video tools. Channel companies, content production, IP, and marketing companies are expected to benefit. 1) Channels: high-quality content supply is entering a rapid growth stage, with channel companies expected to further increase their influence. 2) Content production: efficiency in content production is expected to increase, while costs decrease. 3) IP: companies with advantageous IP can generate various forms of content using AI models at the current stage, while also enjoying the benefits of increasing IP value. 4) Marketing: the generation of short video advertising material will benefit the most. Risk warning: Development of AI video models may not meet expectations; risks in film and television content regulation.