In August 2026, China witnessed the debut of its first AIGC-generated long-form drama, 'Journey to the West Continued', which was broadcast on satellite TV via Hunan TV. This milestone event triggered a notable surge in the stock prices of its producer, Mango Super Media, as well as several other film and television companies. Interestingly, this occurred despite these companies having only a small proportion of their revenue derived from AI-related businesses and generally underperforming in that area. During the same timeframe, the total box office revenue for the summer blockbuster season soared to 12.498 billion yuan, marking the third consecutive year of growth.

Contrary to some expectations, the rise of AI-powered film and television has not led to a decline in traditional live-action film and television. While the market size and user base for AI-animated dramas have expanded rapidly, they are now confronting challenges such as an oversupply of content and difficulties in achieving profitability. Moreover, AI films intended for theatrical release are still largely in the experimental phase. The continued growth in box office revenue within the traditional film market is not driven by price increases but is instead highly correlated with positive word-of-mouth.

At present, AI primarily functions as a production tool and has not yet become the cornerstone of the film and television industry. Its impact is predominantly felt in the realm of mediocre live-action short dramas, which typically have production costs ranging from 400,000 to 800,000 yuan. This has prompted creators to place a greater emphasis on artistic expression. Historical experience suggests that technological advancements tend to eliminate mediocre content that relies on outdated technologies, rather than wiping out entire industries.