In a striking shift within the digital entertainment landscape, vertical short-form dramas have achieved global revenues of nearly $700 million within the first quarter of 2025. Often referred to as “micro-soaps” or “duanju,” these brief episodes, typically lasting between 60 to 90 seconds, are tailored for vertical viewing on smartphones. This innovative format is attracting millions of viewers and drawing them away from traditional streaming platforms.
Leading the surge are platforms like ReelShort and DramaBox, which provide engaging narratives that include themes such as werewolf romances and mafia intrigues. These services operate behind paywalls, with users sometimes spending up to $20 per week to access premium content. Originating from a niche market in China, vertical dramas have now expanded significantly into global markets, particularly in the United States, where they are surpassing established streaming services in user growth.
Growth and Appeal of Vertical Dramas
According to data from Medium’s Real Reel, mobile users spent approximately $700 million on in-app purchases related to vertical drama apps in early 2025. This represents a remarkable fourfold increase from the previous year, with downloads soaring to 370 million. The rapid ascent of this format indicates a change in viewing habits, with audiences now consuming content during commutes or breaks, similar to scrolling through social media platforms like TikTok but with structured storytelling.
The business model employed by these apps is both compelling and controversial. Free initial episodes entice viewers, often ending on cliffhangers that encourage further engagement through micropayments or subscriptions. Series can encompass up to 100 episodes, each concluding with a dramatic twist designed to motivate users to purchase virtual currency for continued access. A recent investigation by the Washington Post revealed that these platforms are now rivaling major players like Hulu and Paramount+, with some boasting hundreds of millions of active users monthly.
Industry Challenges and Future Prospects
Despite their success, the production of vertical dramas raises significant concerns. Industry insiders point out that many series are produced for under $300,000, often employing non-union actors in generic settings to keep costs low. This efficiency allows for the rapid release of new content weekly, although it raises questions about labor conditions. A report from NZ City highlights the intense working conditions faced by creators, who frequently produce scripts at breakneck speeds and sometimes utilize artificial intelligence for plot development.
The vertical drama format is rooted in China’s substantial $5.3 billion micro-drama industry, as detailed in Fast Company. Its expansion into Western markets has led to adaptations that combine Hollywood storytelling techniques with Asian cultural elements, appealing particularly to diverse demographics, especially women aged 18 to 34. Social media platforms like X (formerly Twitter) are buzzing with discussions and debates about plot twists, further amplifying the reach of these programs.
As traditional streaming services like Netflix explore short-form content, the monetization strategies of vertical dramas present a formidable challenge. The ability to generate higher revenue per user through frequent payments contrasts sharply with the subscription-based models of legacy platforms. The South China Morning Post warns that Hollywood should be cautious, as Chinese platforms like ReelShort report more than 55 million monthly users, overshadowing unsuccessful ventures like Quibi.
Looking ahead, the sustainability of this model may depend on its ability to innovate continually. Critics suggest that the reliance on repetitive tropes could lead to audience fatigue. Additionally, increasing regulatory scrutiny regarding in-app purchases has led to comparisons with gambling practices, prompting calls for oversight. A piece by WIRED notes that since 2021, the industry has evolved from a niche market to a significant force in entertainment.
As the vertical drama phenomenon continues to grow, it not only reshapes viewing habits but also cultural narratives. Discussions on X often highlight the guilty-pleasure nature of these shows, while deeper analysis reveals the complexities of democratizing storytelling amid the exploitation of attention economics. The proliferation of micro-soaps challenges traditional media to adapt or risk being left behind in an increasingly fragmented market.