Microdramas have rapidly evolved from experimental content into a mainstream entertainment format generating billions in revenue globally, according to a new report by Media Partners Asia.
“The Micro-Drama Economy” reveals that serialized short-form drama has become a cultural juggernaut in China, where revenues skyrocketed from $500 million in 2021 to $7 billion in 2024. The format is projected to generate $16.2 billion in China by 2030, representing an 11.5% compound annual growth rate.
The milestone moment arrives in 2025, when microdrama revenues in China are expected to surpass the country’s local theatrical box office, reaching $9.4 billion.
“Microdramas have evolved from a niche experiment to a multi-billion-dollar global category,” said Vivek Couto, executive director of MPA. “Production is cheap, but distribution is costly, and success depends on speed, scale, and repeatable IP.”
The Chinese market has proven particularly robust, with more than 830 million viewers consuming microdramas, nearly 60% of whom pay for content or make transactions. Three major players dominate the landscape: ByteDance’s Red Fruit, Tencent‘s WeChat Video Accounts, and Kuaishou’s Xi Fan. These platforms have built dedicated apps integrated with social media and payment systems, leveraging IP from major sources including COL, China Literature, and Tomato Novel.
The industry is also seeing the emergence of premium “S-class” productions with budgets ranging from $400,000 to $600,000, featuring cinematic production values and professional casts.
Outside China, the global microdrama market generated $1.4 billion in 2024 and is forecast to reach $9.5 billion by 2030, representing a 28.4% CAGR. The U.S. leads international markets with $819 million in 2024 revenues, projected to climb to $3.8 billion by decade’s end.
The American audience skews toward affluent, urban women aged 30-60 who gravitate toward romance, CEO storylines, and revenge narratives. DramaBox has emerged as a profitable player, reporting $323 million in revenue and $10 million in net profit in 2024. ReelShort achieved greater scale at approximately $400 million in 2024 but remains unprofitable due to heavy marketing investments.
Japan is positioning itself as the largest Asia-Pacific market outside China, with revenues forecast to top $1.2 billion by 2030, supported by LINE Pay integration and growing local production. Southeast Asia and Latin America represent promising growth regions, while India remains in an exploratory phase.
Artificial intelligence is becoming increasingly embedded in the microdrama value chain, particularly in China where it’s used for personalized content discovery, faster iteration, genre testing, and creating branching storylines. Globally, AI applications focus primarily on localization and dubbing, though its role in cost reduction and creative experimentation is expected to expand significantly.
The revenue mix varies by region. In China, advertising is projected to contribute 56% of revenues by 2030, with subscriptions at 39% and commerce at 5%. The global market outside China will remain subscription and in-app purchase-led at 74%, with advertising rising to 25% and commerce reaching 1% by 2030.
“China’s ecosystem shows what’s possible when content is integrated into social and payments rails, while the U.S. is proving the viability of global expansion,” Couto noted. “The winners will be operators that control their distribution and monetization infrastructure, manage customer acquisition costs, and build sustainable IP pipelines.”
