The Business of Microdramas: Format, Reach, and ROI

Doesn’t matter if you’re Gen Alpha, Gen Z, Millennial, or Boomer, we’re all hooked on one thing… stories. And what is a good story? A story typically consists of an introduction, rising action, climax, and resolution (unless we’re discussing a horror story or a real historical example). Isn’t that the structure of a typical TV show, movie, or even a reel we scroll past on platforms like Instagram, TikTok, YouTube, and others, mainly depending on a person’s age?

Well, China took it further and combined people’s love for binge-watching and short-form content into something we now call “Microdrama,” “Vertical Entertainment,” or “Short Dramas.”

We couldn’t miss the chance to talk about the Microdrama trend, especially since we license Microdramas at allrites. So, let’s take a look at what this format is, how the production process works, and just how hooked the world is right now.

So, What Is a Microdrama?

A Microdrama is like an overly dramatic telenovela broken down into a series of sharp, compact pieces. These short-scripted series typically include 60 to 100 episodes, each lasting anywhere between 30 and 120 seconds. This format aligns perfectly with how people consume content today. In 2025, the average attention span is estimated to be just 8 seconds, which is barely enough time to open an app, let alone commit to a full-length episode. But Microdramas don’t resist this habit - they work with it, offering quick emotional turns that build tension with each swipe.

They’re also designed with mobile viewing in mind. Across Asia, 68 percent of screen time is spent on phones, and in India, that number rises to 78 percent. In the United States, phone and desktop usage are nearly even. Since most viewers hold their screens vertically, Microdramas are shot the same way, making it easy for clips to blend into people’s social feeds. Platforms like Instagram Reels, TikTok, and YouTube Shorts help spread them fast, turning everyday users into informal promoters.

Microdramas monetization follows a model shaped around this viewing behaviour. Most Microdramas begin with a few free episodes (just enough to hook the viewer) before introducing a twist that prompts the viewer to pay. Some users pay per episode, while others choose weekly subscriptions priced between $10 and $20 or opt for full access at around $60. Many end up spending between $20 and $40 to complete a single series. 

Some platforms reward engagement with in-app coins, which can be used to unlock episodes or purchased inside the app. Others run entirely on ads. The logic is simple: keep watching and continue choosing how you want to proceed.

And the returns? They can be fast and significant. Some studios report revenue spikes within days of release, with particular series achieving returns of up to 1,000 percent within just a few days. That level of response would be almost unthinkable for traditional long-form content. Joey Jia, CEO of ReelShort, an app that once overtook TikTok in U.S. downloads, believes this format is here to stay and will help shape the future of digital entertainment. 

Compared to primary streaming services that require substantial budgets, high investment risks, and slow data feedback, Microdrama studios move quickly, track performance in real-time, and adjust with significantly less risk and budget. If engagement drops around episode 12, they see it immediately and can shift direction without significant losses.

As for the audience, the majority are women. Crazy Maple Studio estimates that around 70 percent of their viewers are female, which is not surprising, given the themes many Microdramas build on — romance, betrayal, emotional highs, and messy relationships. However, this is just the starting point, and the format has room to grow and cater to different interests. Action, sci-fi, mystery, and horror are already entering the market, showing that as long as the structure supports emotional peaks and tension, the format can stretch in many directions.

The Production Model Behind Microdramas

Microdramas may deliver sharp emotional highs and gamble-like addictive viewing habits, but behind the screen, their production process is refreshingly lean. Unlike traditional series or feature films, they don’t rely on A-list stars, large crews, or long timelines. Most Microdrama projects are powered by emerging actors, small studios, and focused production schedules, and yet they manage to produce remarkable results.

It usually takes around seven days to prepare and ten days to shoot an entire series. Some Microdramas are produced in under three weeks, from concept to final episode. And while Hollywood projects can stretch into the millions, Microdramas keep their budgets tight. Reports suggest that some productions cost as little as $2,000, while others range between $42,000 and $142,000, depending on the number of episodes, set needs, and location costs. Even the higher end of this range is still far below what’s considered standard for a streaming series or studio-backed title. Some sources mention costs of around $ 300,000, which, in context, still looks modest when compared to even the smallest Hollywood production budgets.

One of the key reasons for this affordability is the absence of expensive star power. Most cast members are early-career actors, local talents, or social media performers hoping to build their portfolios. Lead actors earn $280 to $500 per day, a rate that attracts a steady flow of young professionals trying to break into the entertainment industry. That’s part of why locations like Hengdian, often referred to as the “Chinese Hollywood,” are experiencing a revival as young creatives, costume designers, and crew members return to seek work in this new and fast-moving format.

Still, Microdramas aren’t entirely outside the reach of seasoned talent. Some well-known Chinese producers have stepped into the space, recognizing the commercial potential and creative freedom these projects offer. 

However, a natural question still arises: Will high-profile actors and top-tier directors ever step into the world of Microdramas? While the format today thrives on efficiency, fresh faces, and fast production, it’s not impossible to imagine a shift, especially as downloads grow and revenue continues to climb (we will discuss this later in the article).

If microdramas continue to prove their reach and earning power, there’s a real chance that established talent may take interest. We’ve already seen A-listers join web series, appear in short social video campaigns, and lend their names to experimental formats. Microdramas could offer a similar opportunity, especially for regional stars, rising names, or those looking for high-impact, low-commitment projects between larger ones.

Still, it’s unlikely that big-budget, studio-style casts will become the standard for this format anytime soon. Microdramas are built on speed, cost control, and flexibility—qualities that don’t easily match the schedules, rates, and production requirements of major stars and crews. That said, if platforms like ReelShort or Dramabox begin commissioning “premium” Microdramas with bigger budgets and longer episode arcs, we may start seeing familiar names make occasional appearances.

Microdrama Growth and Global Reach in 2025

Finally, let’s examine some facts and numbers that prove Microdramas are a real deal and a significant player in the Great Media War. In 2024, Microdrama revenue in China surpassed the domestic box office and came close to matching long-form video in terms of average daily viewing time (RisingJoy, 2025). Yes, impressive, and there is more to it.

The market was worth $ 6.54 billion in 2024 and is projected to reach $ 7.21 billion in 2025, potentially increasing to nearly $ 12 billion by 2030. This growth has caught the attention of major investors and companies, including Amazon’s MXAT and Z Entertainment’s Bullet, as well as many other global companies that have begun experimenting with Microdrama models, either as part of their programming offerings or as an entirely new entity. 

Still, not everyone is convinced this growth means long-term stability. Some viewers and critics highlight recurring issues with the format, including a lack of originality in plots and characters (cited by 56% of surveyed users), an emphasis on quantity over quality (46%), and low entry barriers that can lead to uneven production standards (35%). Additionally, China’s government has taken a firm stance on regulating the space, removing more than 25,300 titles (equivalent to over a million episodes) for being deemed inappropriate or in violation of content rules. However, we have seen strict regulations in China regarding entertainment before.

But Microdramas are no longer just a Chinese trend. As the format spreads, it adapts to new markets and audiences. Many Chinese companies have started launching their Microdrama apps internationally, and ReelShort by Crazy Maple Studio, which we mentioned earlier, is an example. Back in 2022, a Microdrama app managed to surpass Netflix in U.S. downloads, a notable milestone, even if partly explained by Netflix’s plateau in its home market and its broader strategy shift toward AVOD and gaming.

What’s particularly promising is how portable the format is. While Microdramas may need to be reshot for different regions, the core story often remains the same. Platforms like ReelShort produce content in English first, then adapt it with new actors and slightly rewritten scripts to suit local preferences. In other words, the scalability of Microdramas.

In Q1 2025, the top-performing countries for Microdrama app downloads (outside China) included not only Asia’s expected leaders, such as Indonesia, India, the Philippines, Thailand, and Japan, but also markets across the Americas, including Brazil, Mexico, Colombia, and the United States. 

When it comes to in-app purchases, the leading regions were the U.S., Japan, Australia, Korea, and Germany. Despite this expansion, China-based apps still dominate, making up 80 percent of the top apps globally and generating nearly 93 percent of global in-app purchase revenue.

That said, new players are arriving quickly. Increasingly, international companies are either developing their apps or expanding their existing catalogs with Microdrama content. In some cases, millions of dollars are already being invested in development and production. Let’s see what the future holds and how this emerging trend develops shortly.

Microdramas and AI

It wouldn’t be a proper conversation about the media business in 2025 (or any business) without considering AI. And yes, microdramas are no exception.

AI is already extending its helpful robotic arms across various parts of the Microdrama ecosystem, including scriptwriting support, plot suggestion tools, fully AI-generated productions, and more ways in which AI can support (or even drive) creative output. CCTV (China’s Central Television) recently aired the country’s first fully AI-generated Microdrama, where art design, storyboarding, video production, voice acting, and music composition were all created by artificial intelligence. The six-episode mini-drama, developed in partnership with Tsinghua University, reportedly cost seven times less than a traditionally produced equivalent. What an eye-catching figure for investors and producers alike.

But this isn’t just a Chinese state experiment. Startups like Charismatic AI, launched by UK-based creator Guy Gadney, are building platforms specifically designed to help creators develop AI-powered Microdramas. The focus here isn’t to replace human creativity, but to speed up the brainstorming and scripting process, primarily since Microdramas often rely on fast and extra emotional spikes, unpredictable plot twists, and cliff-hangers every few scenes.

According to research from India’s growing Microdrama sector, AI is being used to identify popular character types, recurring themes, emotional peaks, and even regional cultural preferences.

In summary, platforms can utilize AI to suggest trending plot setups, generate localized scripts for various regions and languages, automate subtitling and dubbing, and personalize recommendations based on user behavior—the result: faster time to production, tighter alignment with viewer tastes, and lower creative costs.

That said, experts remind us that human taste and judgment remain the central part of any process. While AI can support and scale production, it still takes a human touch to decide which story feels just right and which twist goes too far.

License Microdramas on the allrites marketplace

Microdramas may still be a relatively new format on the global stage, but the numbers, forecasts, and creative experiments already happening speak for themselves. The model is fast, scalable, and fits with how people consume content today. It’s exciting to watch how this trend continues to take shape—and how it might influence the broader media landscape shortly.

And yes, we at allrites have Microdramas available for licensing as well. If you're interested in incorporating them into your platform or programming lineup, please don't hesitate to get in touch.

About allrites

Located in Singapore and globally, allrites is a premier marketplace for buying and selling film, TV, and sports rights. We provide a vast catalog of Film and TV content, from major studios to independent producers, available in any language and genre. Our innovative licensing models, including allrites Content-as-a-Service, offer flexible and efficient content monetization and acquisition solutions, accommodating the evolving needs of content buyers and sellers worldwide.

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