Goldman Sachs says AI lower entertainment production costs, with profits potentially concentrating among leading IP companies and platforms

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Goldman Sachs:AI Making entertainment content supply nearly unlimited, production-side value may remain under pressure

Beating AI breaking news: Goldman Sachs’ latest report points out that AI is reshaping China’s entertainment industry value chain. Content supply is approaching infinity, while users’ time and attention remain limited. This contradiction will drive industry profits to concentrate further among leading IP and distribution platforms.

The report shows that multimodal AI has reduced the production costs of content such as animation, music, advertising videos, and short-form dramas by 80% to 95%, while production efficiency has increased by 5 to 10 times. 2026 years ago, in 8 months, short-form and miniseries production grew by 2025 year-on-year to 13 times, while new game releases increased by more than 8 times; on Hongguo, a leading short-form drama platform, more than 90% of dramas have already adopted AI-generated content.

Goldman Sachs believes that the explosion in content supply brought by AI does not mean that every part of the industry chain will benefit. The value of traditional production and execution functions will be compressed, while the scarcity of leading IP and creative assets will become even more pronounced. Content distribution platforms are expected to benefit from supply growth, but the competitive barriers of copyrighted content libraries may also be undermined by the proliferation of AI content.

By sub-sector, Goldman Sachs believes online games are relatively more resilient. Leading companies such as Tencent and NetEase may leverage AI to extend the lifecycle of mature IP; long-form video platforms may benefit from lower costs in the short term, but face long-term pressure from declining user time and the impact of AI content on the advantages of copyrighted content. In addition,AI entertainment still faces major risks: difficulties in monetization and tightening regulation.

Original link https://m.theblockbeats.info/flash/368369

Key points

A Goldman Sachs research report notes that AI is reshaping the value chain of China’s entertainment industry.
The report states that multimodal AI AI reduces the production costs of content such as animation, music, advertising videos, and short dramas by 80% to 95%, while increasing production efficiency by 5 to 10 times.
2026 years ago 8 months, production of short-form dramas and miniseries compared with 2025 full-year growth 13 times, the number of new game releases grew by more than 8 times.
More than 90% of Hongguo’s series have adopted AI generated content.
Goldman Sachs believes that the value of traditional production and execution, among other stages, will be compressed, while the scarcity of leading IP IP and creative assets will become more pronounced.
Goldman Sachs believes that online games are relatively more resilient, while long-form video platforms may benefit in the short term from lower costs.
AI Entertainment still faces major risks: monetization difficulties and tighter regulation.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

The view expressed in the article is:AI It can produce entertainment content faster and at lower cost, but users’ time and attention are limited, so it may become more difficult for the production stage to maintain value; leading players IP and distribution platforms may become more important.

Why it matters to readers

If the report's assessment proves correct, value allocation in the entertainment industry may become more concentrated among leading IP companies and distribution platforms, while traditional production faces pressure.

This indicates that AI it may not only reduce production costs but also change the competitive positions of different segments within the entertainment industry.

Risks and unknowns

The evidence does not provide the research report’s complete methodology, sample, or measurement definitions.
The evidence does not state whether the relevant data underwent independent verification.
The evidence only states that AI the entertainment industry faces monetization difficulties and tightening regulation, without specifying the extent of the impact.

Goldman Sachs says AI lower entertainment production costs, with profits potentially concentrating among leading IP companies and platforms

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