CITIC Securities: AI commercialization in the media industry is accelerating, and the value of premium content is being revalued.

CITIC Securities research report states that in Q3 2026, the media industry's revenue increased by 4.25% year-on-year, gross profit rose by 6.64% year-on-year, and core business remained resilient, though profit levels diverged due to changes in investment gains and front-loaded investments by some companies. Compared with the interim report, the more noteworthy change in the industry is the continued deepening of AI applications, with commercial value beginning to expand from production efficiency gains to business revenue, content innovation, and platform monetization. The gaming sector maintains a relative advantage driven by product cycles and global operations; AI has penetrated the entire process of R&D, testing, and publishing, and progress in overseas AI creation platforms and world models further expands long-term imaginative space. The marketing sector is the first to validate the commercial value of AI; model upgrades by AppLovin and Unity are driving advertising monetization efficiency and profit growth, while domestically AI-driven revenue, intelligent ad placement, and model services are gradually forming incremental growth. Film and cinema operations recovered sequentially; upgrades in video models and improvements in creation tools are driving AI content toward premiumization, long-form content, and interactive film-game extensions, further highlighting the importance of high-quality IP and professional production capabilities. The publishing sector is stabilizing in operations, with state-owned enterprise reform, copyright data, and AI education expanding long-term value. Looking ahead, product cycles, AI commercialization, and diversified IP development remain the main growth directions for the media industry; attention should be paid to companies with advantages in high-quality content, global operations, technology implementation, and channel resources.