Key facts
- Microdramas, vertically shot serials with short episodes, are booming in Hollywood.
- The format is projected to generate $1.5 billion in U.S. revenue this year and nearly $2 billion next year.
- Microdramas originated in China and are helping Chinese-backed apps establish a presence in Hollywood.
- Platforms like CandyJar are seeing significant sales, with series costing between $100,000 and $300,000 to produce.
- Major entertainment companies, including NBCUniversal and Fox, are investing in and producing microdramas.
- Microdramas are leveraging AI technology.
Hollywood is experiencing a boom in "microdramas"—short, vertically shot serials delivered in two-minute episodes—as studios increasingly target a mobile-first audience, particularly on platforms like TikTok. This trend is providing a lifeline and creating new opportunities in a shrinking traditional film and television industry.
Craig Williams, who operates Vertical World Studios, has expanded his production facilities to meet the demand for these microdramas, purchasing liquidation assets from major studios like Sony Pictures and Paramount. The format is a significant growth area, with projections of $1.5 billion in U.S. revenue this year, potentially reaching nearly $2 billion next year. This contrasts with the traditional U.S. TV business, valued at $125 billion, which is expected to shrink by as much as $15 billion annually due to cord-cutting.
The microdrama phenomenon originated in China, with Chinese-backed apps such as ReelShort and GoodShort establishing a presence in Hollywood. The broader market for vertical videos, including TikTok, is expected to generate $150 billion globally this year (excluding China). This shift is creating work for actors, writers, directors, and craftspeople, attracting investment from studios, media companies, and tech platforms.
Microdramas leverage the cliffhanger format for smartphone viewing, with episodes typically lasting between 45 seconds and two minutes. This strategy has led to significant user growth, with 66 million monthly active users in the U.S. last year, more than double the previous year. Platforms like CandyJar are achieving substantial sales, with series costing between $100,000 and $300,000 to produce, a fraction of the cost of traditional sitcoms. Themes often focus on romance, with platforms like CandyJar attracting a predominantly female audience, while others like MyDrama are diversifying genres to attract a wider demographic.
Social media platforms like TikTok, Instagram Reels, Facebook, and YouTube Shorts act as discovery engines, driving users to dedicated microdrama apps. Issa Rae's thriller "Screen Time" garnered 500 million views on TikTok in a month, highlighting the format's reach. Major entertainment companies are responding by integrating vertical video into their streaming apps. NBCUniversal has introduced vertical content on Peacock, and Fox has partnered with Ukrainian company Holywater to produce over 200 vertical video titles. Veteran media executives are also launching new ventures in the space, aiming to capture this growing audience.