China Internet Sector: AI downstream application expert call key takeaways

We hosted an expert call with a former AI Director at a leading short drama/AI animated short drama company, now founder of an AI content firm. The expert noted Seedance 2.5 currently leads in overall quality and generation efficiency, while Kling remains differentiated in professional-grade production; switching costs are low for creators so model capability remains the key selection factor. Seedance is priced higher (Rmb1.8/s vs. Alibaba Wan's Rmb0.2/s) but its higher hit rate narrows the cost gap. Model providers are adopting tiered pricing. World models are seen as the next major frontier, with Tencent's Hunyuan currently leading. AI short drama/anime is among the earliest downstream GenAI content applications to reach broad commercialisation;