Microdramas — vertical series for smartphones with episodes lasting up to two minutes — could generate $1.5 billion in revenue in the US this year, according to Omdia’s forecast. Their monthly audience more than doubled last year to 66 million users. The format is generating work for small studios and attracting the attention of major media companies against the backdrop of a shrinking traditional television market.
Briefly about the main points
- Omdia estimates that the US microdrum market will generate revenue of $1.5 billion this year.
- The format’s monthly audience in the US has grown from 26 million to 66 million.
- Fox has signed a deal with Holywater to produce over 200 vertical titles.
- Ironblood’s AI projects take three to four weeks to produce and cost between 1TP and 4T60 thousand.
- SAG-AFTRA has introduced specific standards regarding pay, rest periods and safety.
Growth against a backdrop of decline in traditional television
Microdramas originated in China, and apps backed by Chinese capital – notably ReelShort and GoodShort – have already established themselves in Hollywood. Their growth is taking place at a time when the traditional industry is under pressure: streaming services are competing with YouTube, and anticipated mergers could reduce the number of films and TV series in production.
The US television industry is valued at approximately $125 billion, but PricewaterhouseCoopers expects its value to fall annually to $15 billion in the coming years as viewers move away from cable television. Film production expenditure in the US rose by 4% in the last quarter thanks to tax incentives, according to data from ProdPro, although globally it remains lower.
Vertical video in general — including TikTok, but excluding China — is set to generate $150 billion in global revenue this year, according to Owl & Co.’s estimates. At the heart of this market are short series that adapt television drama to the habit of watching videos on smartphones.
Cliffhangers, subscriptions and cheaper production
Microdrama episodes last between 45 seconds and two minutes and get straight to the plot without lengthy exposition, in order to grab the viewer’s attention straight away. According to eMarketer, the average American watches 99 minutes of video on their smartphone every day. The core audience consists of women aged between 25 and 55, although on the MyDrama platform the proportion of men reaches 30%, and the 22–27 age group is growing the fastest.
Platforms usually make the first few episodes available for free, and then offer a weekly subscription for around $8–20. CandyJar, which releases a new romantic story roughly once a week, expects to exceed $100 million in annual sales.
A typical CandyJar series consists of 50–75 episodes, takes around three months to produce and costs between $100 thousand and $300 thousand. By way of comparison, the production of a single episode of a traditional half-hour sitcom costs $2–4 million.
Short-form platforms are attracting viewers, whilst media groups are catching up
TikTok, Instagram Reels, Facebook and YouTube Shorts have become the «new trailers» for micro-dramas, directing users to dedicated apps, according to Maria Rua Agüete, head of media and entertainment at Omdia. Issa Rae’s thriller «Screen Time» racked up 500 million views on TikTok in a month.
According to an Omdia analysis based on data from Sensor Tower, ReelShort’s daily mobile viewing time rose by 40% in the second quarter — to approximately 38 minutes. This is more than the mobile viewing time for Netflix, Amazon Prime Video or Disney+ by the same measure.
Major companies are experimenting with the format on their own platforms. NBCUniversal added vertical videos to Peacock in early 2025, and in the summer released two unscripted micro-dramas featuring Bravo characters. Fox has signed a deal with the Ukrainian company Holywater to produce over 200 vertical titles in exchange for a stake in the company. The platform and studio aTwist plans to release 20–30 micro-series across various genres in the coming months.
AI is transforming the production cycle and the way we work
CandyJar’s sister platform, Ironblood, uses generative AI for action micro-dramas. Such projects can be completed in three to four weeks and cost up to $60 thousand. The scripts are written by humans, real actors are used to train the system to convey facial expressions, and the director adjusts the scene via text prompts.
Inkitt, the company behind CandyJar and Ironblood, has around 135 employees and has taken on a further 35 in recent weeks. Its CEO, Ali Albazaz, said that the company is adding one or two video producers every week as it ramps up its content output.
SAG-AFTRA has drawn up a separate contract for new media, setting out minimum pay rates, mandatory rest periods and safety regulations. Hernán López, head of Owl, says that for many people coming to Los Angeles, their first job in a vertical drama serves as their gateway into the industry.
