Hollywood Bets Big on Microdramas as Vertical Video Revenue Soars

Major Hollywood players are now investing heavily in microdramas. This fast-growing format features short, vertical videos made for smartphones. Former studio executives are launching new platforms to capture this market.

The move signals a major shift. After watching the success of apps like ReelShort, veterans are bringing production expertise to the low-budget, high-volume world of vertical series. According to The Hollywood Reporter, this is now a multi-billion dollar opportunity.

Executive Power Moves Into Mobile Entertainment

Several high-profile ventures have been announced recently. Fox Entertainment invested in the Ukrainian verticals company Holywater. Former Miramax CEO Bill Block launched GammaTime with $14 million in funding.

Another startup, MicroCo, was unveiled by former ABC and Showtime executives. These leaders believe they can improve production quality. They aim to expand beyond the romance genre that first defined these quick-paced shows.

The Financial Appeal of a Fledgling Format

The business model is driving the interest. Viewers watch the first few episodes for free. They then pay or view ads to continue. Series budgets are remarkably low, often between $100,000 and $300,000.

Revenue potential is significant. Analysis from SensorTower found the U.S. market generated nearly $350 million for vertical apps in early 2025. This freemium model allows platforms to release many series and see what resonates with audiences.

The ambition is to build a dominant streaming service for vertical video. However, attracting established talent on micro-budgets remains a challenge. Some platforms plan to create new stars, while others aim to court known actors and writers.

The race is on to define the future of mobile-first storytelling. Hollywood’s microdrama gamble hinges on whether improved quality can build lasting viewer loyalty in a notoriously fickle market.

A quick knowledge drop for you

What exactly is a microdrama?

Microdramas are short video series filmed in portrait mode for smartphones. Episodes are typically one to three minutes long. The format first gained massive popularity in China.

How do you watch these vertical series?

They are primarily watched on dedicated mobile apps like ReelShort or DramaBox. Viewers often discover clips on social media platforms like TikTok or Instagram before downloading the app to watch the full story.

Who is the target audience for microdramas?

The initial core audience has been primarily female. New Hollywood-backed ventures aim to broaden this by producing content in genres like true crime, horror, and comedy to attract a wider viewership.

How much does it cost to produce a microdrama series?

Budgets are extremely low by Hollywood standards. A full series of 60-90 episodes often costs between $100,000 and $300,000 to produce. This compares to millions per episode for traditional TV.

Why did Quibi fail where these apps are succeeding?

Quibi had high budgets and required a subscription from the start. Current microdrama platforms use a freemium model with low production costs. This makes user acquisition easier and financial risk much lower.

When will these new Hollywood-backed apps launch?

GammaTime launched in October 2024. MicroCo has stated it aims to release its app in the first half of 2026. Fox’s partnership with Holywater is already active, producing hundreds of shows.