China Entertainment: Infinite content, finite attention in the age of AI

The entertainment industry is now entering a new era - content supply is becoming almost infinite, generation cost and turnaround have significantly reduced, and interestingly audiences are also getting more used to AI generated content as the quality is improving. In contrast, users' attention is still finite in the age of AI. Hence, we believe this could have a fundamental impact on the China Media and Entertainment industry, and likely shift the industry value chain and profit pool over the next few years. Content production and editing in themselves could become more competitive and commoditized with the help of AI, while long-lasting IP franchise and creative idea generation could become more valuable vs. long-tail content. Content distribution platforms (such as short/mid form video) will benefit from the amplified content supply but also need to balance between real human vibes and the influx of AIGC content. We examine the latest AI generation status, cost/time savings, industr