Short-form scripted video apps known as microdramas are generating billions of dollars in consumer spending and are positioned for broader adoption in the U.S., according to new data from app analytics firms and recent platform launches.
Rapid Growth In Consumer Spending
Microdramas are serialized shows with episodes typically around one minute long and distributed through mobile apps that use in-app purchases, ads, or subscriptions to unlock content. The format first gained traction in China and has expanded internationally.
According to data from Appfigures, the microdrama app ReelShort generated about $1.2 billion in gross consumer spending in 2025, an increase of 119 percent from 2024. Another app, DramaBox, recorded $276 million in gross consumer spending in 2025, more than doubling its total from the previous year.
New Entrants And Industry Attention
The category continues to attract new entrants. TikTok recently launched a standalone microdrama app called PineDrama.
A separate startup, GammaTime, founded by former Hollywood executives, raised $14 million in funding. Investors include Alexis Ohanian, Kris Jenner, and Kim Kardashian.
Comparison With Earlier Short-Form Video Efforts
The rise of microdrama apps contrasts with the collapse of Quibi, which shut down in 2020 after raising more than $1.75 billion. Quibi, founded by Jeffrey Katzenberg, focused on professionally produced shows with episodes designed for mobile viewing but failed to gain traction despite high-profile talent.
ReelShort and similar apps differ in structure and monetization, relying on episodic cliffhangers and frequent prompts for payments or ad viewing rather than premium subscriptions alone.
Monetization And Viewer Engagement
Microdrama apps typically allow users to watch a limited number of episodes for free before requiring payment through in-app currency, ads, or weekly subscriptions. Some apps offer interactive storylines, where viewers choose between narrative paths, with certain options gated behind paid tokens.
Eric Wei, chief executive of Karat Financial, described the appeal of the format in an interview with TechCrunch, pointing to its focus on romance-driven narratives and serialized engagement. Wei compared the genre’s themes and monetization mechanics to other creator platforms, noting that suggestive storytelling and recurring payment prompts drive continued viewing.
Use Of AI In Content Production
Several companies in the microdrama space are adopting AI tools to accelerate content creation. PocketFM, which is backed by Lightspeed, released an AI tool called CoPilot in 2025. The company said the tool was trained on thousands of hours of content to help writers structure stories with cliffhangers and plot twists.
Another company, Holywater, which raised $22 million to support its app My Drama, describes itself as an AI-first entertainment network.
Creator Economics And Production Costs
Sean Atkins, chief executive of Dhar Mann Studios, said short-form vertical video reduces production costs compared with traditional long-form formats. In comments to TechCrunch, Atkins said the lower overhead could encourage creators with experience in low-cost production to enter the microdrama space.
Ongoing Expansion
The continued growth of microdrama apps reflects rising consumer spending on short-form serialized content, alongside experimentation with AI-assisted production and mobile-first monetization models. Data from 2025 suggests the category is expanding rather than contracting, with new platforms, funding rounds, and distribution channels entering the market.
Featured image credits: Pexels
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