[Huatai Securities: AI film and television is showing structural differentiation] On November 12, Huatai Securities research report stated that AI film and television is showing structural differentiation. According to guests, traditional long-form dramas and theater chains continue to shrink, while AI film and television has been implemented in layers based on maturity, with Chinese dramas and online movies taking the lead. Long-form dramas and theater chains are still limited by scripts, emotional expressions of characters and consistency of pictures. Benchmark cases confirm that "the larger the screen, the lower the fault tolerance rate." "Journey to the West" synchronized Taiwan and the Internet to run through the small screen closed loop and gained high popularity. The cost structure has shifted from on-site production to manpower and computing power, the accounting model has become mainstream, and cultural tourism IP and AI have been used to expand overseas and monetize. The current core pain points are the lack of drama production capabilities, the need for rework due to the generation of models every six months, and the scarcity of comprehensive talents. In the future, we are optimistic that Chinese dramas and online movies will take the lead, real people + AI will become the mainstream in the long term, and local culture and real emotions will build differentiation. In the future, production relations will be tilted towards content creators, and one source for multiple uses will tend to become the conventional path for IP development. However, technology is essentially an enabling tool, and narrative quality is still the core variable that determines the value of content.