TikTok-like microdramas are going to make billions this year, even though they suck

By day, Emily is a college student. By night, she works shifts at a strip club to cover her tuition. She’s convinced no one in her life knows — until a mysterious English teacher walks in one evening. Did he recognise her? Is her secret about to unravel? To find out, viewers can spend 60 in-app “tokens,” sit through an ad, or pay $20 a week for a VIP pass that removes interruptions entirely.

The premise is over-the-top, the acting exaggerated, and the dialogue often painfully awkward. Still, these short, pulpy stories — known as microdramas — are pulling in staggering amounts of money. Built for vertical viewing and broken into episodes that often last less than a minute, microdramas are quickly becoming one of the most lucrative corners of mobile entertainment.

Popularised initially in China, microdrama apps are poised for a breakout year in the U.S. According to Appfigures data, ReelShort generated roughly $1.2 billion in gross consumer spending in 2025, a 119% increase from the previous year. Another major player, DramaBox, brought in $276 million over the same period, more than doubling its 2024 revenue.

Momentum doesn’t appear to be fading. TikTok recently launched its own standalone microdrama app, PineDrama. Meanwhile, GammaTime — a new entrant founded by Hollywood veterans — has raised $14 million in funding from high-profile angel investors, including Alexis Ohanian, Kris Jenner, and Kim Kardashian.

The success of microdramas is striking, given how recently short-form scripted video seemed like a failed experiment. Just five years ago, Quibi — the mobile-only streaming service founded by Jeffrey Katzenberg — collapsed after raising more than $1.75 billion. Quibi aimed to deliver prestige content in 10-minute episodes designed for on-the-go viewing, complete with stars like Liam Hemsworth, Reese Witherspoon, and Anna Kendrick. Despite its pedigree, audiences never showed up, and the platform quickly became shorthand for a spectacular flop.

By contrast, ReelShort — whose hit series include titles like My Sister Is the Warlord Queen and In Love with a Single Farmer-Daddy — is thriving.

“How are they succeeding where Quibi failed?” said Eric Wei, a creator economy expert and CEO of Karat Financial, in an interview with TechCrunch. “They’re basically OnlyFans for the female gaze. It’s romantasy — titles like ‘My Alpha.’ Think ‘50 Shades of Grey,’ but made for vertical video.”

The comparison to OnlyFans isn’t perfect — these shows stop short of explicit content — but the underlying economics are familiar. As storylines edge toward romance or sexual tension, viewers are prompted to either watch ads or pay to continue. The payoff rarely justifies the spend, which keeps users chasing the next episode, only to encounter another paywall or an in-app currency request.

At their core, microdrama apps borrow heavily from the playbook of mobile games. They lure users in with free content, reward daily logins with small amounts of virtual currency, and rely on addictive design to keep engagement high. As viewers binge, the free tokens quickly become insufficient, leaving payment as the only way to keep watching.

Some microdramas add interactivity, letting audiences choose how a story unfolds. But even here, monetisation is built into the decision-making process. The empowering option — say, a woman confronting an abusive ex — often costs tokens, while the less satisfying outcome is free.

Eventually, many users cave and purchase a $20-per-week ad-free subscription. Over the course of a month, that adds up to more than the combined cost of HBO Max, Netflix, Hulu, Disney+, and Paramount+.

Artificial intelligence is poised to accelerate the trend even further. At the same time, large language models aren’t capable of producing prestige television like Succession or even a traditional sitcom; the most successful microdramas are built on rigid, repeatable formulas. Many open with nearly identical scenes — a shy girl with glasses is humiliated by a bully, rescued by a popular boy, and revealed to be beautiful after removing her glasses.

Some companies are already leaning into automation. PocketFM, backed by Lightspeed, introduced an AI tool called CoPilot that analyses thousands of hours of content to identify story “beats” that keep audiences hooked. The Ukrainian startup Holywater, which raised $22 million to support its microdrama app My Drama, describes itself as an “AI-first entertainment network.”

Still, not everyone sees AI as a replacement for creators. Dhar Mann Studios CEO Sean Atkins believes the format presents a real opportunity.

“Short-form already has lower overhead than traditional production, and vertical video lowers it even more,” Atkins said. “You’ll see a group of creators lean into this seriously, especially those who already know how to produce compelling content on tight budgets.”

Microdrama platforms have stumbled onto a highly effective business model — one that feeds on short attention spans, constant monetisation, and endlessly repeatable plots. Whether audiences love them or loathe them, these bite-sized dramas are rapidly becoming the “Cocomelon” of adult entertainment, and they’re making billions along the way.