Continual Breakthroughs in AIGC Industry: The Growing Vibrancy of the Cultural Media Sector

Cultural Media Sector Growth: Gaming and AI Innovations

The cultural media landscape, highlighted by short dramas and gaming, has marked its third consecutive rise. On March 13, gaming stocks surged, spurred by game exports, online gaming, and short drama games. Gainscope Group reached a 20% increase, while Zhangqu Technology enjoyed gains exceeding 10%. Other companies like Caesar Culture, Zhongguang Tianze, Times Publishing, Dasheng Culture, Longban Media, and Zhangyue Technology also hit their upper trading limits.

Between December 2023 and February 2024, an average of 110 Chinese mobile games received approval each month, a notable increase from the previous average of 87 games. This trend illustrates a growing frequency of game license approvals. Guoxin Securities reports stability in gaming regulations, with normalized game license issuances projecting a positive trend in industry demand fueled by new releases and mini-program games. Long-term innovations in AIGC and VR/AR/XR technologies are anticipated to streamline costs, enhance efficiencies, and foster new interactive experiences, potentially transforming content and business models.

The launch of the video generation model Sora has further sparked interest in AI stocks. "Multimodal" AIGC technology is emerging as a game changer, providing new production tools in film, gaming, and video, significantly cutting production costs. Recently, Gainscope Group indicated it is exploring the feasibility of an AIGC model for generating short drama videos directly from scripts, with an announcement expected soon.

Guomai Culture has showcased its AI animated feature film, inspired by traditional Chinese classics, utilizing advanced AI comic models to boost creativity. The company is also emphasizing AI applications in proofreading, digital comics, and readers, presenting innovative solutions for the publishing industry.

In recent industry highlights, the video platform Pika introduced a feature for users to generate sound effects for their video content. Meanwhile, AI startup Anthropic launched the Claude 3 series models, which promise diverse intelligence levels, speed, and cost-efficiency to cater to various AI application needs. These large language models are setting new performance benchmarks across cognitive tasks.

Looking ahead, Huajin Securities anticipates multimodal technology will diversify AIGC content and enhance model generalization capabilities. This technology facilitates the transformation and generation of diverse data types, including text, images, and audio-visual content. The AIGC sector is rapidly evolving into a three-tier industrial ecosystem, trending toward a "model-as-a-service" paradigm. Commercial applications of AIGC are expected to mature swiftly, significantly expanding market size. AIGC has already made remarkable advancements in highly digitalized sectors like media, e-commerce, film, and entertainment, highlighting its growing market potential.

Shouchuang Securities emphasizes that current advancements in the AIGC industry significantly boost productivity and are likely to revolutionize multimodal content production, particularly in images and videos, enhancing overall production efficiency in content creation. The firm identifies three promising investment areas: quality IP-holding companies leveraging AIGC for rapid transformation, content companies improving production through AI, and leading internet firms strengthening platform dynamics with advanced model capabilities.