CICC released a research report stating that leading companies in the media sector, with advantages in business scale, technological reserves, and capital operations, are poised to benefit first from industry trends. In 2025, the media sector is expected to show an overall upward trend amid rotations in sub-sectors, driven by policy tailwinds, new product cycles, and the globalization of Chinese content. Coupled with robust demand for IP-driven economies and AI advancements, key companies are likely to experience varying degrees of earnings growth and valuation recovery. Looking ahead to 2026, the firm believes the industry may enter a new cycle empowered by policies, with AI, globalization, and IP as core growth drivers.
**Key Views from CICC:** 1. **New Content Cycle Amid Policy Support** The gaming industry is benefiting from normalized license approvals, leading to a clear recovery in supply. Meanwhile, the video and series sector may enter a critical phase of content innovation and operational optimization as new broadcasting regulations take effect.
2. **AI Development Enters a New Phase** By 2026, AI-native applications are expected to expand further, shifting from being auxiliary tools to creative drivers. This could enhance the adaptation of online literature into film/TV productions and automate content creation in gaming and advertising, optimizing revenue streams.
3. **Global Expansion of Chinese Content** Cultural exports in gaming, web novels, and short dramas have already established mature pathways. In 2026, the focus may shift toward premium content, transitioning from broad distribution to "cultural essence + localized adaptation" for more targeted growth.
4. **Accelerated Growth in IP Economy** Domestic IP commercialization—spanning content, consumer goods, and services—is expected to flourish in 2026. As the industrial chain matures, the sector may see scaled growth and systemic value reassessment.
**Sector Rankings:** - **Digital Media & Gaming**: Strong business models; leading companies' premium content capabilities may drive profit growth and global competitiveness, with AI adoption likely to accelerate. - **Social & Community Platforms**: AI and globalization provide incremental growth, with sustained profitability improvements. - **Marketing & Advertising**: AI integration across workflows; focus on efficiency and new ad formats in a stabilized environment. - **Film & Theater**: Sentiment recovery pending; long-term focus on industrial upgrades. - **Publishing**: Resilience in educational books; stable high dividends. - **Cable & Broadcasting**: Steady growth; potential in large-screen scenarios.
**Risks:** Macroeconomic slowdown, regulatory changes, and intensifying competition.
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