CLSA has released a research report stating that ByteDance's launch of its Seedance 2.0 video model represents a pivotal moment for the global entertainment industry. This signifies the beginning of widespread adoption of AI-generated content (AIGC) across short-form video, micro-drama, and future mid-to-long-form video platforms. The disruption is expected to start at the content production level, as the enhanced model enables the mass visualization of stories through simple prompts. The dynamics of content distribution are likely to evolve rapidly, testing the ability of existing players to integrate and monetize this new wave of engaging content. The micro-drama industry and intellectual property (IP) owners are anticipated to benefit in the near term due to their defensive characteristics. CHINA LIT is positioned to benefit from demand for its mid- and long-tail IP library, its own micro-drama operations, and related investments. The report also mentioned that KUAISHOU-WR's Kling 3.0 model, launched on February 5th, shows improvements in controllability, character consistency, visual realism, and multilingual generation capabilities, making it a strong competitor among similar products. Globally, competition in generative video models remains intense, with over ten major companies currently vying for leadership, including Google, Vidu, xAI, OpenAI, BABA-WR, ByteDance, Kuaishou, PixVerse, Lightricks, Runway, MiniMax, and Luma Labs. In the long term, CLSA believes ByteDance possesses comprehensive, full-stack capabilities ranging from cloud infrastructure (Volcengine) and tool suites (CapCut) to distribution platforms (Douyin/Hongguo).