Content Microdosing

A compelling marketing report found that 61% of Gen Z prefer watching short-form videos over those longer than three minutes. The study also highlights that this generation is more drawn to real people than fictional characters. In essence, as Gen Z enters the workforce, gaining economic influence, they're choosing quick, casual content over long binge-watching sessions. 

Binging at Risk

Ted Sarandos, Netflix’s CEO, sounded worried about the growing vertical content market at the Paley Media Council, last March. He described YouTube as operating a “killing time” business, in contrast to Netflix’s more immersive “spending time” model. He also argued that YouTube isn’t a sustainable path for content creators, saying that “YouTube doesn't give any money up front to make it, so they’re doing it all at their own risk" (The Wrap).

Market Pivot

The truth is that Netflix and the other players are facing fresh competition as the creator economy gains serious momentum. With traditional film and TV production on the decline, led by the collapse of the cable bundle, the ongoing deterioration of the movie theater business, and a noticeable slowdown in streaming growth, the vertical industry could be both the poison and the antidote for Hollywood. 

As a result, every entertainment company is trying to figure out a way to make more money from YouTube, Instagram and TikTok. Ben Silverman's Propagate Content has teamed-up with Parker Management, creating a hybrid model that will allow for a possible way out of the recession.

Microdramas

Short and vertical are not the future, but the present. Microdramas (short-form, addictive video series) have taken China by storm, generating a staggering $6.9 billion in revenue in 2024. As their popularity surges internationally, platforms are now betting big on replicating that success in Western markets. 

One of the biggest players in the domestic US space is Crazy Maple Studio, a California-based company that owns ReelShort, a platform with more than 55 million monthly active users, most of them women. The company is now hiring former film and TV crews and actors who were left unemployed by the recent developments in Hollywood (THR).

Expensive Seconds

This is how microdramas work: each episode runs just 60 to 90 seconds. Viewers get the first few episodes for free, but a subscription is required to keep watching the series.

Audiences report becoming quickly hooked, spending up to $80 USD each month through a coin-based weekly subscription model. For the same amount, a viewer could subscribe to top-tier, ad-free plans on Netflix, Apple TV+, Prime Video, HBO Max, Hulu, and Disney+, all at once.

Soapy Content

These platforms keep costs low by using lesser-known actors, modest budgets, and fast production cycles. Case in point: Reelshort released nearly 200 titles last year alone. The kind of content available sounds like old soapy romances: "Never Divorce a Secret Billionaire Heiress", "Fated to the Alpha", "Married in a Heartbeat" and "Dear Husband, Delete My Number" (NPR). 

Micro Profits

Asia’s top five microdrama apps have reached a cumulative total of 150 million monthly active users in February, while China-based companies achieved significant growth in the genre. Apps such as Dramabox, Goodshort, Reelshort and Shortmax have also experienced significant growth in the Philippines, Indonesia, Brazil and even the U.S. (Deadline). 

Influencers' Economy

It's not just the format, platforms, and length of content that are evolving; the key players are changing too. Influencers have become powerful creators, commanding niche audiences with the kind of persuasion once reserved for A-list celebrities. One thing is certain: we will all resist, transform and adapt at the same time. Let us know if you need help on any front. 

Best,

Laura

PS: We’re thrilled to announce the upcoming launch of our new case-study book: 

THE NEW ERA OF ENTERTAINMENT 

a 30-Month Investigation into the Post-Pandemic Film & Television Industry: Streaming’s Rise, AI’s Disruption, and the Future of Entertainment 

From December 2022 through May 2025, we’ve tracked the seismic shifts shaping the entertainment market in our newsletters, which are now combined and edited into this book that covers Development, Production, Distribution and Market. DM us and reserve your digital copy today!