"Those who work in the space say that while micro series cost a fraction of what a traditional feature-length movie costs, typically in the $100,000 to $300,000 range, they often lose money because the high cost required to market them can far outstrip the actual production cost. 'An app may boast of a show that makes $30 million, but $27 million of it will have gone to advertising,' said Thom Woodley, a longtime verticals producer."
"Owl & Co. founder Hernan Lopez said apart from the market leaders ReelShort and DramaBox, much of the category is in 'investment mode,' like Netflix was 10 years ago. He recently reported that of 1,200 series, only 2% of vertical series crossed the 100 million views mark - a hit, in verticals terms - and only with spending on user acquisition (i.e. marketing)."
Micro dramas, also called verticals, became widely popular in 2025 after originating in China and expanding in the U.S. Critics have faulted the format for low quality, depictions of violence against women, and limited casting diversity. The format generated an estimated $1.3 billion in the U.S. in 2025, mostly from direct payments from viewers, and provided jobs that are often non-union. Production budgets typically range $100,000–$300,000, but marketing expenses can consume most revenue. Major companies like Fox and Disney are investing, and 2026 is viewed as a make-or-break year for business models and genre expansion.
Read at Business Insider
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