The digital entertainment landscape is undergoing a significant transformation, with vertical short-form dramas—often referred to as “micro-soaps” or “duanju”—surging to a remarkable revenue of $700 million globally. These brief episodes, typically lasting between 60 to 90 seconds and tailored for vertical smartphone viewing, have captivated millions, particularly in the United States. The rapid rise of platforms such as ReelShort and DramaBox showcases a shift in audience preferences, diverting attention from traditional streaming services.
As audiences seek content that fits their fast-paced lifestyles, the format of vertical dramas has proven particularly appealing. According to data from Medium’s Real Reel, mobile users spent nearly $700 million on in-app purchases for these applications in the first quarter of 2025, marking a fourfold increase compared to the previous year. Downloads of these apps soared to 370 million, indicating a robust appetite for on-the-go entertainment.
Business Model and Audience Engagement
The business model behind vertical short-form dramas is both innovative and contentious. Initial episodes are often available for free, enticing viewers with cliffhangers that encourage them to engage further. To unlock subsequent episodes, users must make micropayments or subscriptions, which can range up to $20 per week. A typical series can include as many as 100 episodes, with each episode ending on a dramatic note, compelling viewers to purchase virtual currency such as “coins” or “gems” to continue watching.
Recent investigations by the Washington Post reveal that these apps are rivaling established players like Hulu and Paramount+ in audience size, with some boasting hundreds of millions of monthly active users. The content is characterized by its melodramatic themes—titles like “Pregnant by My Ex’s Professor Dad” and “Secret Surrogate to the Mafia King” reflect a strategy aimed at eliciting rapid emotional responses.
Production costs remain low, often under $300,000 per series, allowing for quick turnarounds with non-union actors and generic settings. This efficiency has led to a flood of new content being released weekly. Nevertheless, concerns regarding worker exploitation are rising, highlighted in a report by NZ City, which discusses the demanding conditions faced by creators who are pressured to produce scripts at an alarming pace, frequently utilizing AI for plot generation.
Global Expansion and Market Disruption
Initially emerging from China’s $5.3 billion micro-drama sector, these vertical dramas are now making significant inroads into Western markets. U.S. adaptations blend traditional Hollywood elements with Asian influences, appealing to a diverse demographic, particularly women aged 18-34. Social media platforms, particularly X (formerly Twitter), have become hotbeds for discussions around these shows, with users actively sharing their binge-watching experiences and debating plot developments in real-time.
Despite the apparent success of these formats, traditional streaming services face challenges. While platforms like Netflix have experimented with short-form content, the monetization strategies employed by vertical dramas—predominantly through frequent microtransactions—offer higher revenue per user. The South China Morning Post has raised alarms about the potential implications for Hollywood, noting that Chinese platforms like ReelShort report approximately 55 million monthly users, dwarfing less successful ventures like Quibi.
Critics are beginning to question the sustainability of this model. As repetitiveness in storytelling becomes apparent, the potential for viewer fatigue grows. Increasing regulatory scrutiny is also a concern; practices surrounding in-app purchases have prompted comparisons to gambling, leading to calls for oversight. A feature in WIRED emphasizes the industry’s rapid evolution since 2021, transitioning from niche exports to mainstream contenders.
Looking towards the future, experts anticipate a greater integration of AI technology to create personalized viewing experiences and potential collaborations with social media platforms. As one producer noted in an interview with HackerNoon, vertical series signify a new era in streaming—mobile-first, driven by emotional engagement, and endlessly scalable.
As this trend continues to grow, it poses a significant challenge for traditional media outlets. The rise of vertical dramas not only reshapes consumption habits but also raises ethical and cultural questions. While they democratize storytelling, there is a risk of perpetuating stereotypes in the pursuit of engagement. The ongoing proliferation of micro-soaps highlights a critical juncture for the industry, urging traditional content producers to adapt or face obsolescence.
