Short-form vertical videos known as microdramas are projected to generate $1.5 billion in U.S. revenue this year, representing a growing sector within a shifting Hollywood production landscape. These serials, typically consisting of two-minute episodes shot for mobile phones, are expected to reach nearly $2 billion in revenue next year, according to research firm Omdia.
The format originated in China and has expanded through apps like ReelShort and GoodShort. While the traditional U.S. television market remains much larger at $125 billion, PriceWaterhouseCoopers projects that sector will shrink by approximately $15 billion annually due to cord-cutting. In contrast, U.S. monthly active users for microdramas rose from 26 million in 2024 to 66 million last year.
Major entertainment companies are responding to this growth by integrating vertical content. NBCUniversal’s Peacock app introduced vertical videos in early 2025, and Fox recently partnered with the MyDrama app to produce over 200 titles. Production costs for these series range from $100,000 to $300,000, significantly lower than the $2 million to $4 million typically spent on a half-hour television sitcom episode.
Artificial intelligence is also being utilized to further reduce costs and production time. The platform Ironblood uses generative AI to complete action-focused microdramas in three to four weeks for $60,000 or less. These productions use human-written scripts and real actors to train the AI, with directors using prompts to adjust character expressions and story elements.
Viewers are seeing a change in how they pay for and consume narrative entertainment. Instead of traditional cable bundles, consumers often access the first few episodes of a series for free before encountering weekly subscription fees ranging from $8 to $20 per service. Some users, such as influencer Meagan Johnson, reported spending as much as $200 a month on these platforms. The format also utilizes social media platforms like TikTok and Instagram as "trailers" to drive traffic to dedicated apps, where mobile viewing time for some services now exceeds that of Netflix or Disney+.
For the broader labor market and legal landscape, the SAG-AFTRA union has established a new media contract to regulate this sector, setting minimum pay rates, safety rules, and mandated rest periods. This indicates the format is moving from an experimental niche to a regulated part of the professional industry. Looking ahead, companies like aTwist plan to release 20 to 30 new microseries in the coming months, while tech-focused firms like Inkitt continue to hire new producers weekly to meet the demand for rapid content output.