Soapy, low-cost micro dramas are exploding in the US, challenging Hollywood streamers like Peacock and HBO
Original story by: Business Insider
Last updated: Oct 23, 2025
Ad
- Context: Low-cost vertical dramas, popularized in China and characterized by short, mobile-first episodes, are rapidly gaining traction in the US. These micro dramas are presenting a new challenge and opportunity for traditional Hollywood as they generate significant revenue and user engagement, even rivaling established streaming services on mobile platforms.
Ad
Ad
- Detailed Summary:
- Vertical dramas, also known as micro dramas, are short, low-budget scripted series typically consisting of one- to two-minute episodes designed for mobile consumption.
- These productions, often described as soapy and cheesy with titles like "Fake Married to My Billionaire CEO," originated in China and have seen an explosive growth in the US market on apps such as ReelShort and DramaBox.
- They operate outside traditional Hollywood structures, often utilizing AI in production and featuring non-union actors, which contributes to their low production costs, estimated at $100,000 to $300,000 per full-length movie.
- Despite criticisms regarding themes like violence against women and lack of racial diversity, these micro dramas are proving to be highly lucrative, with apps on track to generate $3 billion globally (excluding China) in 2024, a near threefold increase from the previous year.
- User engagement is notable, with users spending more time on apps like DramaBox than on Peacock and HBO Max, at least on mobile devices, according to Bernstein analysts.
- Major Hollywood players are beginning to invest in this emerging market. Fox Entertainment has invested in Holywater, the company behind the micro drama app My Drama, seeing potential for testing new show ideas and extending existing franchises.
- The actors' union, SAG-AFTRA, has allowed its members to work on these projects, providing opportunities for actors experiencing a work shortage.
- Industry veterans have launched initiatives like MicroCo, backed by Cineverse, to capitalize on the micro drama formula, aiming to elevate the format through a combination of union and non-union labor, and AI tools.
- Skepticism remains within traditional Hollywood due to the low production quality, reliance on non-union talent, and the economic disparity compared to blockbuster films, with some comparing the trend to the failed short-form video experiment Quibi.
- However, the distinct timing of this phenomenon, with the rise of mobile-first content consumption and the evolving media landscape, suggests it may be more sustainable than previous attempts.
Ad
Ad