It's blowing up wildly again, with AI conducting high-intensity intermittent "training" on the film, television and media industry.
On October 12, amid the volatile A-share market, the cultural and entertainment-related sectors continued their strong performance, bucking the trend to see a surge in limit-up stocks, with a number of film and television media stocks ranking top in terms of gains.
AI film and television, IP, interactive content, and short dramas are all moving from concept to the realization of production capacity and revenue, triggering the market to re-examine the valuation methods for cultural and entertainment companies, which is exactly why the highlights of the current cultural and entertainment sector are worth sorting out.
As is known to all, in the sports system, High-Intensity Interval Training (HIIT) is an exercise method that extremely builds physical fitness. Common movements include burpees, jumping jacks, high knees, squat jumps, mountain climbers and so on. This type of training alternates between high and low intensity, which can efficiently burn fat and improve cardiopulmonary function in a short period of time.
For film and television media stocks, all the forms and content brought by AI are probably that High-Intensity Interval Training (HIIT). Those that can survive wave after wave of training will inevitably become very strong. So, are the bosses ready? Are the secretaries of the board of directors ready? Are the investors ready? Are the producers ready?.......
Highlight 1: AI Film and Television
AI film and television is evolving from short films and short dramas that are mainly driven by traffic to long-form narratives. The market has begun to set separate prices for AI long-form narrative content such as AI films and AI series, which initially verifies the commercial closed loop of AI long-form content.
At the recent Pingyao International Film Festival, Volcano Engine released the Seedance Film and Television Cooperation Plan, which provides Token subsidies and promotion support for four types of projects: feature films, series episodes, animation works, and creative short films. The maximum incentive for a single project can reach one million yuan, and it requires that 100% of the video generation link of the whole film be realized by Seedance. The currently launched AI feature films include *Hell Grind*, *Hot Blood Dachen Island* and others.
Keling had intensively released information on long-form film cooperation as early as during this year's Cannes Film Festival. At the 31st Busan International Film Festival Asian Content & Film Market (ACFM), Keling AI joined hands with well-known creative teams to bring four projects including director short films, animated feature films, short dramas and AI hybrid films. From the control of performance and scene scheduling, to the consistency of main characters, to the application of generated materials in all post-production links, and the final discussion on distribution and delivery standards for theaters and streaming media, AI is increasingly integrated into professional production scenarios.
The landmark event on the theater side is Bona Pictures' *Sanxingdui: Past Events of the Future*. This 100-minute AI hyper-realistic theatrical film obtained the "Dragon Mark" (film distribution license) in May this year. It is the first domestic AI technology-produced theatrical feature film in China to get the Dragon Mark. All the characters are original digital images, and it is scheduled to be released nationwide on October 23. Recently, the AI film *Off-Plan: Mission to the Moon* has started shooting, which means that the AI film list has entered a continuous development track.
The Publicity Department of Hangzhou Municipal Party Committee, together with the Film Academy of China Academy of Art, Huace Film Academy of Zhejiang University of Media and Communications, and Hangzhou Film and Television Artists Association, released the first batch of 10 "AI + Film" cultivation projects on October 9, including 5 theatrical films and 5 online feature films respectively.
During the National Day holiday, Mango TV and Hunan TV moved up the release of the "Battle in the Heavenly Palace" chapter of *Post-Journey to the West* in their prime time on October 4. *Post-Journey to the West* is China's first AIGC long drama with no real actors participating, and it is also the first project that implements simultaneous review and broadcast after the "21 Broadcasting and Television Regulations". Its production cost is less than 1/10 of that of traditional 3D animation. Subsequent AI dramas such as *Colleagues' Jealousy*, *Sou Shen* and *Baizhu's Return Voyage* are also in reserve.
iQiyi is going all in on AIGC feature films and AI hybrid production of film and television works to promote the commercialization of AI long-form content. The AIGC online feature film series *Soul Ferry: Floating Life Dreams* launched together with Changxin Media uses AI technology to restore the original cast of actors. The total split-box-office revenue of the three films in this series exceeded 10 million yuan a few days ago. In September this year, iQiyi also announced the launch of the "Liaoyuan Plan", which plans to release more than 40 AIGC films throughout the year. The first ultra-long real-person AI seasonal drama *No Love for Mandarin Ducks, Only Love for Immortals* is scheduled to be launched in Q4, and next year it will also launch the ancient costume long drama *Tianxing Jiuge: The Peerless One* which combines real actor shooting and AI hybrid production.
Tencent Video also arranges business on two tracks, with faster implementation in the direction of AI hybrid production. The AI real-person drama *Bodyguard for Escort* launched in September adopts the production method of combining real shooting and AI generation, and is clearly positioned as a "high-quality AI drama with real actors".
Highlight 2: Interactive Dramas and Interactive Film & Game Works
Interactive content is deeply integrating into the mainstream commercial system. One of the most notable changes this year is that interactive dramas have obtained official status.
In the filing and publicity of the National Radio and Television Administration on September 29, the independent classification of "interactive drama" appeared for the first time. The 30-episode contemporary sci-fi themed interactive drama *Cadillacs and Dinosaurs: Secret Land of China* declared by Changsha Drama Strategy Media is the first interactive drama made public. This means that "interactive dramas" will get rid of the previous dilemma of vague identity and management, and be incorporated into the normalized management system of dramas, and platform cooperation and other related matters will also be more standardized in the future.
As early as August this year, supporting policies have been implemented in advance. The National Radio and Television Administration released the "Management Tips (Classification and Stratification Standards for Micro Dramas)", which defines interactive micro dramas as "works with game features, forming multiple plots through branch narratives for users to choose, equivalent to a set of internally related micro drama collections", and divides three levels of review thresholds according to the theme attributes and investment amount.
In terms of interactive games, its commercial model has been re-verified by hit projects such as *Flourishing Age*. With the development of AI video generation technology and world models, game companies and film and television companies are also accelerating their entry into this field.
Multiple studios and companies under Tencent have made intensive layouts on the tool and platform side. The Photon Studio Group launched the AI interactive game platform "Zaohua Workshop" in May, splitting the creation of interactive film and game works into six standardized steps; the AI content creation and interaction platform "DreamNow" exposed in the same period displays AI videos, images and interactive film and game works in a waterfall flow. In June, the AI interactive content creation platform "TDream" was exposed, positioned as "creating playable worlds", allowing users to create interactive film and game content with branch plots and interactive experiences with one click. In July, Tencent Video launched the internal test of "WorkSolo", which provides individual creators with three modes: AI short dramas, interactive film and television, and free canvas, supporting zero-code production of interactive film and game works with branch plots and multiple endings.
ByteDance is also synchronously verifying tools and products. On September 20, Jianying released the interactive film and game creation platform ICG Studio at the Douyin Creator Conference. After creators determine the main storyline and key decision points, AI will automatically complete multi-branch plots, generate visual assets with a unified style and output storyboard frames.
The AI interactive film and game work *No Mortal World* from Jiangnan Studio of Nuverse was launched on Steam Early Access on September 24, priced at 19.9 yuan, and rushed to the top 20 of the Steam bestseller list the next day. (ByteDance's game *No Mortal World*: Striving to create interactive film and game works that can only be realized by AI) A video on October 11 shows that Film Hurricane demonstrated the capability of ByteDance's latest world model, which can generate a 3D space that users can enter and interact with. No more official information has been disclosed so far, but for interactive film and games, this technical direction can not only lower the creation threshold, but also is expected to change the production cost structure of multi-branch creation.
Many listed film and television companies have recently increased their investment in the interactive film and game market.
The interactive film and game business of Huanrui Century is mainly in charge of its subordinate Fenglin Studio, which is promoted through multiple modes such as leading production, co-production, and participating in distribution. As of September 2026, a number of products have been launched, including *It's Over! I'm Surrounded by Beautiful Women! 2*, *The North of the River*, *Code Name Three Kingdoms: Dragon Rise*, *Below Freezing Point*, *Protagonist*, *Hidden Detective Demo Version*, covering themes such as love simulation, historical power struggle, and doomsday survival.
On August 12, Huace Film and Television joined hands with Guangzhou Yixiangfeng Interactive Technology to start shooting the real-person interactive film and game *Code Name: Lost* in Tonglu, Zhejiang. Positioned as "slight horror narrative + emotional expression", it is expected to be launched in 2027, which is also the first implemented project of Huace's layout in the interactive film and game track.
Highlight 3: IP
IP derivatives are breaking away from the status of mere content accessories, and becoming the core that can continuously realize revenue in the cultural industry chain.
The voluntary business update announcement released by MINISO on October 9 shows that the GMV of its flagship self-owned IP "YOYO" in the first nine months of 2026 exceeded 1 billion yuan, officially joining the global IP "Billion Yuan Club". YOYO is an exclusive signed self-owned artist IP with a gross profit margin higher than that of externally licensed IPs.
The announcement also disclosed that the total GMV in mainland China in the third quarter increased by 25% to 30% year-on-year, and the growth rate further accelerated compared with the first half of the year; the GMV in the US market in the third quarter increased by about 20% year-on-year, and the growth rate in September rebounded to more than 30%.
Brunco, which operates in the building block character toy track, is expanding its IP product line. During WF2026 on this year's National Day holiday, Brunco exhibited nearly 500 products and more than 90 new products for the first time, covering more than 10 international IPs such as Ultraman, Transformers, DC, and Hatsune Miku.
Traditional listed film and television companies are also accelerating the layout of IP business lines. Enlight Media clearly proposed this year to transform into "a creator and operator of IP". The semi-annual report shows that in the first half of the year, the revenue from Enlight's talent agency business and other businesses increased by 35.58% year-on-year to 190 million yuan, surpassing the main film and television business and becoming the largest source of revenue.
The concert of its artist Ding Yuxi and the pop-up store of its self-owned brand JOHNSONMEOW are being promoted simultaneously, and related peripheral products are also sold synchronously in the Tmall flagship store. Shortly after the sale, the sales volume of the same style of pajamas exceeded 10,000 pieces.
Maoyan Entertainment extends its business from channel advantages to IP operation. In the first half of this year, Maoyan won a number of IP derivative cooperation projects including Universal and Disney projects such as *Toy Story 5*, *Minions and the Big Monster*, and *Spider-Man: Brand New Day*. At the same time, it reached cooperation with institutions such as South Korea's Kakao Entertainment, obtaining the exclusive full domestic copyright of overseas IPs such as UMEUS and SOOBOOKZ.
In August, Maoyan also signed a framework agreement on IP business cooperation with Yuewen Group. The upper limit of IP licensing fees for 2026 and 2027 is 10 million yuan and 30 million yuan respectively, and the upper limit of total joint investment is 15 million yuan and 80 million yuan respectively.
In addition, IP trendy toy enterprises with composite resource models are also active in the primary market.
AYOR TOYS demonstrated how the binding of "capital + artists" can directly drive sales. Founded only in June 2025, this company has a very intensive financing pace: it received investment from Alibaba in September 2025, 10 million yuan investment from Huace Film and Television in January 2026, investment from Cloud 9 Capital in May, and recently completed a new round of industrial and commercial changes, adding new shareholder Zhejiang Jiaxing Nanhu Financial Services. Estimated based on the shareholding ratio when Huace Film and Television invested, the company's valuation has exceeded 200 million yuan half a year after its establishment.
Highlight 4: AI Short Dramas
The recent moves in the short drama track show two main lines: on the one hand, AI technology is being enhanced, and on the other hand, leading companies and platforms are carrying out integration. (Related reading: The First Wave of AI Film and Television Capitalization: Short Dramas Begin to Tell Profit Stories)
GoodShort and DramaBox are both top platforms in overseas short drama APP rankings. According to the income list in September, DramaBox's overseas in-app purchase income ranks firmly first in the industry, while GoodShort ranks fifth. But recently, according to multiple sources, the two have officially reached a strategic merger, and the two leading overseas short drama platforms have completed integration.
There used to be a large number of overseas short drama platforms, but only a few of them have achieved real scale. After the merger, the new platform's bargaining power in content procurement, traffic placement, and user acquisition will be enhanced, and the head effect will become more prominent.
The planned establishment of a joint venture company by NetDragon and Jiuzhou Culture is a new exploration for short drama companies to start the capitalization of AI technology assets.
On September 28, NetDragon's wholly-owned subsidiary NetDragon Websoft Inc. (NetDragon BVI) entered into a legally binding memorandum with Jiaxing Jiuzhou Culture Media Co., Ltd. (Jiuzhou) to establish a joint venture company, and proposed to issue up to 25 million unlisted warrants to Jiuzhou or its designated entity according to a special authorization.
According to the announcement, NetDragon BVI will inject Hong Kong dollar cash equivalent to 50 million RMB into the joint venture company in exchange for 51% equity; Jiuzhou will inject intellectual property rights related to its AI content creation and distribution system "Harness System Business" to hold the remaining 49% equity.
For Jiuzhou, this is to turn technical capabilities from "tools" into "valuable assets"; for NetDragon, it is to use 50 million Hong Kong dollars in cash to obtain an AI system that has already been verified in the short drama scenario.
Regardless of the result of this performance bet, it means that as the first