The rise of micro-dramas: A new era of storytelling

The early days of Quibi

In early 2020, Jeffrey Katzenberg launched Quibi, short for “quick bites,” with the vision of revolutionizing short-form content. Despite consuming nearly $1.5 billion in capital, the company shut down just six months later. Fast forward four years, and the global market for micro-dramas—ultra-short fiction content designed for on-the-go consumption—has grown to a staggering $2 billion annually, with projections to double by 2025.

The digital native content revolution

Micro-dramas, much like Korean webtoons, are digitally native content crafted for viewers using handheld mobile devices. This format gained traction as people resumed commuting and traveling post-COVID lockdowns, contrasting with the success of streaming services like Netflix and Disney+ that thrived during the pandemic. Unlike traditional media, micro-dramas are designed to be consumed vertically, similar to social media feeds.

China’s dominance in the micro-drama market

China leads the world in the micro-drama market, with a size that rivals the rest of the world combined. The sector’s growth is astonishing, reportedly expanding at an annual rate of 250%. In 2023, Chinese state media reported that the industry grossed $5.2 billion, equivalent to about 70% of the country’s theatrical cinema market.

Key players in China

The market leaders in China include Kuiashou, which transitioned from user-generated short videos to micro-dramas, and Douyin, the sister app of TikTok owned by Bytedance. These platforms typically host micro-dramas with 60-100 episodes, each lasting between 30-120 seconds—essentially a scene.

The art of storytelling in micro-dramas

Unlike user-generated content on platforms like Reels or Shorts, micro-dramas are professionally produced, with well-placed storytelling beats. Chinese tech giant Tencent highlights the genre’s creativity with examples like “Vampires in love,” “A woman who unknowingly marries a billionaire,” and “A chef who time-travels to the Ming Dynasty.”

However, some viewers criticize the genre for being saturated with simplistic and over-wrought stories of revenge and infidelity, contrasting sharply with the premium series offered by mainstream streamers.

Mentorship and innovation

Earlier this year, Douyin enlisted iconic Hong Kong film director Stephen Chow, known for “Shaolin Soccer” and “Kung Fu Hustle,” to mentor creatives exploring the micro-drama format. This move underscores the industry’s commitment to elevating the quality and creativity of its content.

The business of micro-dramas

At the APOS media and entertainment conference in Indonesia, Chinese executives presented their new version of quick bites to a global audience of 550 decision-makers from media conglomerates, Asian entertainment players, and private equity investors. Presenters included Nan Yapeng, VP of Crazy Maple Studio & GM at ReelShort, Zhou Jian, CEO of MicroshowTime, and Liu Jin Long, CEO of ShortMax.

Monetization models

The micro-drama market employs various monetization models, including ad-supported video-on-demand (AVOD), subscription (SVOD), and transactional (TVOD) variants. The freemium model, where initial episodes are free and subsequent ones require in-app payments, is particularly prevalent. This model mirrors the dominant video game approach in China, where game consoles are rare.

Production and distribution dynamics

Micro-dramas benefit from low production costs and short cycles, typically two to three months, with per-episode costs as low as a few thousand dollars. This low barrier to entry allows non-traditional media players to compete with established companies. For instance, while Quibi reportedly spent $100,000-125,000 per minute on its shows, Chinese hit show “Unparalleled” earned $14 million in its first eight days of release with far less investment.

Marketing and user acquisition

Despite low production costs, distribution and marketing expenses can be significantly higher. For every dollar of revenue, players spend around 80% on advertising and user acquisition, 10% on content, and the remaining 10% on platform operation.

Global expansion and future prospects

The micro-drama format is gaining traction in East and Southeast Asia, the U.S., and beyond. Chinese companies are exporting their business models, with ReelShort, backed by Tencent and Baidu, emerging as the largest platform for micro-dramas in the U.S. In the first quarter of 2024, three major China-backed micro-drama apps were downloaded 30 million times across Apple’s App Store and Google Play, grossing $71 million internationally.

The evolving landscape

The industry’s unique production, marketing, and operational approach challenges traditional content creation norms. Success now hinges on refined data points and capturing mass emotions, making constant iterations crucial for show monetization.

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