Microdramas Boom in a Shrinking Hollywood as Studios Chase a TikTok Audience
Hollywood is shrinking due to mergers, AI extinction fears, and cord-cutting. Microdramas, vertically shot serials, are booming and generating $1.5 billion in revenue in the US this year.
Intelligence analysis by Llama
Hollywood is shrinking due to mergers, AI extinction fears, and cord-cutting. Microdramas, vertically shot serials, are booming and generating $1.5 billion in revenue in the US this year.
Microdramas are short, vertical videos that are like super-short TV shows. They're really popular on TikTok and other apps, and people are making a lot of money creating them. They're like a mix of sitcoms and rom-coms, but way shorter and more simple.
Analysis
The Rise of Microdramas in Hollywood
Hollywood is facing a shrinking industry due to mergers, AI extinction fears, and cord-cutting. However, one format is booming: microdramas. These vertically shot serials are generating $1.5 billion in revenue in the US this year and are expected to jump to nearly $2 billion next year.
The format originated in China and has given Chinese-backed apps, such as ReelShort and GoodShort, a Hollywood foothold. Vertical videos altogether, which include TikTok, have surged, projected to reach $150 billion in global revenue this year, excluding China.
Microdramas are succeeding because they apply a centuries-old formula - the cliffhanger - to the ubiquitous smartphone. Episodes range from 45 seconds to two minutes long, leaving little time for lengthy plot set-ups. The little-known studios behind the phenomenon are raking in dollars, with CandyJar, a two-year-old platform, on track to generate more than $100 million in annual sales.
The themes of microdramas are uncomplicated and the dramatic beats hit you over the head. The term microdramas is apt: they're sitcoms and romcoms stripped down to the basics, a sketch of a show rather than a fully-fledged drama. Other platforms are more diverse, with males accounting for 30% of the users on My Drama, according to a new poll released by Owl & Co. and My Drama parent Holywater Tech.
Microdramas typically offer the first few episodes for free before charging through weekly subscriptions at around $8 to $20 to access each service. Meagan Johnson, an influencer from Chicago, discovered microdramas on Facebook and now spends hours glued to them. She has spent as much as $200 a month.
TikTok's broad reach has made it a haven for microdramas where viewers can discover new series without encountering the barrier of a paywall. Actress, writer, and producer Issa Rae launched her first microdrama, the thriller 'Screen Time,' on TikTok, where it attracted 500 million views in a month.
Key points
- Microdramas are generating $1.5 billion in revenue in the US this year and are expected to jump to nearly $2 billion next year.
- The format originated in China and has given Chinese-backed apps, such as ReelShort and GoodShort, a Hollywood foothold.
- Microdramas are succeeding because they apply a centuries-old formula - the cliffhanger - to the ubiquitous smartphone.
- The little-known studios behind the phenomenon are raking in dollars, with CandyJar, a two-year-old platform, on track to generate more than $100 million in annual sales.
If the microdrama phenomenon continues to grow, it could create more jobs for actors, writers, directors, and craftspeople, and attract more investment from studios, media companies, and technology platforms.
However, the microdrama phenomenon also raises concerns about the quality of content and the impact on traditional TV and film industries.
