Investment Rating - The report maintains a "Positive" investment rating for the media industry [5] Core Insights - The report expresses an optimistic outlook on the development of the AI video industry, suggesting that trends may exceed market expectations due to three key factors: extended video duration, lower prices, and content expansion [1][2] - The potential market space for AI video generation is estimated at $41.6 billion, with $3.8 billion from the P-side (content creators) and $39.7 billion from the B-side (content production) [3][17] Summary by Sections Industry Dynamics - Recent advancements in AI video generation technology are expected to enhance content penetration rates, with the possibility of achieving stable 1-minute videos by the end of the year [1] - Cost optimization through technological innovations, such as Kuaishou's Keling and Alibaba's MoE architecture, is anticipated to lower user costs and increase penetration rates [2] Content Expansion - New content formats, such as AI-generated comic dramas and AI-assisted adaptations, are emerging, which will likely expand the overall content market [2] Market Potential - The P-side market includes over 200 million content creators overseas and 160 million in China, with an estimated 35% monthly active user ratio and varying payment penetration rates [9][10] - The B-side market, focusing on content production across various sectors, is projected to reach $198.4 billion, with a 20% AI penetration rate leading to a potential market space of $39.7 billion [13] Investment Recommendations - The report suggests focusing on companies with multi-modal AI applications and overseas expansion strategies, highlighting Kuaishou (01024, Buy), Meitu (01357, Not Rated), Wanjing Technology (300624, Not Rated), and MiniMax (Not Listed) as potential investment targets [4]