At the 23rd UBS Securities A-Share Seminar, analysts discussed the shift in China's AI sector from model capability to economic viability. Xiong Wei of UBS noted that enterprises are moving from maximizing token usage to optimizing costs, favoring Chinese open-source models. These local models can cost less than one-tenth to develop compared to international peers, with API pricing at 10% to 20% of global competitors.
Kenneth Fong, head of China internet research at UBS, highlighted that stagnant mobile traffic limits AI's revenue potential. Even with lower production costs, consumer attention remains a finite resource. The industry is now focused on whether AI-driven efficiencies can generate sustainable business value rather than just lowering expenses for content creation.
Mango TV is testing this model with its AIGC-produced series, The Later Journey to the West, which premiered on August 31. The series is created using the Mango Lingchuang platform, which supported over 3,900 projects and served more than 40,000 professional users by mid-2026. The platform generated 109 character and 143 scene assets for the 30-episode show.
The project utilizes a parallel production and broadcast model. Early performance metrics are positive: the premiere ranked first in real-time ratings among provincial satellite channels, and the show recorded 27.57 million plays on Mango TV by September 2. Regulators have tasked the team with proving the long-term commercial viability of AI-powered long-form storytelling.