中国AI视频模型：基于Seedance 2.5推出的视频模型生态评估

China AI Video Models Assessing Video Model Landscape With The Roll-out of Seedance 2.5 CITI’S TAKEBytedance today (link, 23 Jun) held the Volcano Engine Force conference, introducing several AI products including Seedance 2.5, which is nearingthe end of testing and expected to be launched in early Jul. The majorupdates for the latest version include: 1) 30-second video output, 2) 50-multi modal reference input, 3) more controllable video editing. With itsleading position, Seedance 2.5 should further improve efficiency for itsusers through extension of video length, 50 pieces of mixed inputs whichcan better maintain details’ consistency, and more controllable editingwhich supports localized independent modifications while keeping the Brian GongAC+852-2501-2747brian.gong@citi.com Alicia Yap, CFA+852-2501-2773alicia.yap@citi.com More details on the upgrade–1. Native 30-second video generation: most peermodels can only generate 15-20 seconds per clip, forcing users to stitch segmentstogether, which could cause visible seams, facial deformations, color shifts, and motion breaks, so Seedance 2.5’s 30-second video generation could decentlyenhance consistency and further unlock value of the model to professional producers.2. Up to 50 multimodal reference inputs: those reference inputs include images,audio clips, concept art, etc., and the model can maintain consistency of the entirevisual universe like multiple characters‘ front view, side profiles, and details, implying More thoughts on competitive landscape– Seedance 2.0 has the leading positionwithin the video generation model industry thanks to its the fluidity of action and theconsistency of visuals, marking a critical commercialization point for the industry,and we expect Seedance 2.5 to further improve the commercialization potentials ofthe industry via the efficiency and controllability improvement, though we don’t viewthe upgrade as a breakthrough one. We think Seedance could further strengthen itspresence in China market but hasn’t expanded into overseas very aggressively. If you are visually impaired and would like to speak to a Citi representative regarding the detailsof the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside the Appendix A-1 ANALYST CERTIFICATIONThe research analysts primarily responsible for the preparation and content of this research report are either (i) designated by “AC” in the author block or (ii) listed in bold alongside content which is attributable to that analyst. If multiple ACanalysts are designated in the author block, each analyst is certifying with respect to the entire research report other than(a) content attributable to another AC certifying analyst listed in bold alongside the content and (b) views expressed solelywith respect to a specific issuer which are attributable to another AC certifying analyst identified in the price charts orrating history tables for that issuer shown below. Each of these analysts certify, with respect to the sections of the report IMPORTANT DISCLOSURESAnalysts’ compensation is determined by Citi Research management and Citigroup’s senior management and is based upon activities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates (the “Firm”).Compensation is not linked to specific transactions or recommendations. Like all Firm employees, analysts receivecompensation that is impacted by overall Firm profitability which includes investment banking, sales and trading, and For financial instruments recommended in the Product in which the Firm is not a market maker, the Firm is a liquidity providerin such financial instruments (and any underlying instruments) and may act as principal in connection with transactions insuch instruments. The Firm is a regular issuer of traded financial instruments linked to securities that may have been Unless stated otherwise neither the Research Analyst nor any member of their team has viewed the material operations of theCompanies for which an investment view has been provided within the past 12 months. For important disclosures (including copies of historical disclosures) regarding the companies that are the subject of this CitiResearch product ("the Product"), please contact Citi Research, 388 Greenwich Street, 6th Floor, New York, NY, 10013,Attention: Legal/Compliance [E6WYB6412478]. In addition, the same important disclosures, with the exception of the https://www.citivelocity.com/cvr/eppublic/citi_research_disclosures.Valuation and Risk assessments can be found in thetext of the most recent research note/report regarding the subject company. Pursuant to the Market Abuse Regulation ahistory of all Citi Research recommendations published during the preceding 12-month period can be accessed via Citi Velocity Guide to Citi Research Fundamental Research Investment Ratings:Citi Research stock recommendations include an investment rating and an optional risk ra