Guotai Haitong: AI is Reshaping the Video Industry; Tool Vendors Are Poised to Benefit from Growing Creative Demand

Guotai Haitong released a research report stating that, according to data, the domestic micro-drama market is expected to exceed RMB 121 billion in 2026, up 21% year on year. As the capabilities of multimodal large models such as Seedance improve, AI dramas are accelerating their expansion toward premiumization and long-form video. Platform, IP, and content production companies are expected to benefit from growth in content supply and improvements in production efficiency, while AI video tool providers are expected to benefit from growth in creative demand.