These salacious, bite-sized soaps have become a $1.3 billion business in the US

"Micro dramas, the buzzy format awash with billionaires behaving badly and werewolf lovers, are raking in cash. The mobile-focused shows have caught Hollywood's eye in recent months, and a new report from streaming consulting firm Owl & Co. hints at why. The short-drama apps are on track to make $3 billion in revenue this year globally, excluding China, Owl estimated. That's nearly triple their haul last year."

"About three-fourths of that revenue comes from viewers, who are prompted to pay up after seeing a certain number of episodes for free, Owl said. Most of the rest comes from advertising. Other key stats Owl shared: The US is the biggest market for micro dramas outside China, accounting for $1.3 billion 20 apps, including market leaders ReelShort and DramaBox, account for about 90% of the revenue The top 20 apps reach 250 million monthly active users, or about 10% of US mobile users"

"Few dramas reach hit status. ReelShort's most popular title, "The Double Life of My Billionaire Husband," hit almost 500 million views. But of 1,200 series tracked by Owl, only 2% crossed 100 million views. The phenomenon popularized in Asia is still small next to streaming giants like Netflix or YouTube, but its rise has demonstrated there's a market for scripted storytelling in bite-sized episodes. Owl's report focused on the industry outside China, where a state regulator estimated the market stands at about $7 billion."

Micro drama apps are projected to generate $3 billion globally this year outside China, nearly triple last year's revenue. The U.S. is the largest non-China market, producing about $1.3 billion. About three-fourths of revenue comes directly from viewers who pay after a number of free episodes; most remaining revenue comes from advertising. Twenty apps, including ReelShort and DramaBox, account for roughly 90% of revenue and reach about 250 million monthly active users. Only a small fraction of series become viral hits: of 1,200 tracked series, 2% exceeded 100 million views.

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