Microdramas? No, Microseries. Vertical Video Industry Revenue Set to Hit $150 Billion in 2026 (Ex-China)
The entertainment world is witnessing a quiet revolution — one that unfolds not on cinema screens or traditional TV sets, but in the palms of our hands. Vertical video, particularly in the form of bite-sized serialized stories, is exploding into a mainstream force.
According to data unveiled by Owl & Co. at the summit, the vertical video economy is projected to generate $150 billion in revenue in 2026, excluding China — a robust 42% increase from $106 billion the previous year.
This growth stands in stark contrast to other segments of the entertainment industry, which continue to grapple with post-pandemic recovery challenges, declining linear TV ratings, and softening ad revenues.
From Microdramas to Microseries: A Rebrand for Broader Horizons
One of the most telling shifts at the summit was linguistic. Industry insiders increasingly ditched the term “microdramas” in favor of “microseries.” Why? The format has outgrown its origins in soapy, romantic cliffhangers. While romance and revenge tales built the category, the medium is rapidly expanding into new genres: action, wildlife documentaries, reality repurposed for mobile, adult animation, and more.
As Xian Li of Ideali Projects put it, audiences “don’t care if it’s microdrama or a normal TV series — they care if it’s a good story.” The rebrand reflects confidence that vertical storytelling can transcend a single genre and compete directly with traditional formats.
AI: Powerful Tool, Not Replacement for Storytelling
Artificial intelligence loomed large over the discussions. ReelShort CEO Joey Jia, whose platform alone generated $1.2 billion in consumer spending last year, openly admitted that from a pure business perspective, AI offers superior efficiency and market response compared to live-action. Yet even he emphasized a hybrid approach: ReelShort remains committed to live-action and human creators for strong narratives.
Other speakers echoed this nuance. Platforms like Holywater’s My Muse have fully embraced AI-generated content with retention and engagement rates matching their live-action counterparts. Still, Tommy Harper (executive producer of Wednesday and Top Gun: Maverick) struck a cautionary note: “You can make anything you want in AI. If you don’t have the human emotion, you don’t feel it. Nobody’s going to watch it. So you have to have a good story that starts with that.”
The consensus? AI consumers will likely become core users of future microseries algorithms, accelerating production and lowering costs. But without compelling storytelling, “AI slop” won’t cut through the noise. Quality narratives remain the kingmaker.
Mainstream Breakthrough Imminent
Many at the summit believe the microseries moment is not just coming — it’s arriving this year. Tommy Harper predicted: “I think it’ll happen this year. It’s going to take some impact with either a social media actor or a brand that comes in and infuses it to get in the zeitgeist of the world.”
TikTok is already pushing boundaries. Its first major microseries, Screen Time with Issa Rae’s Hoorae Media, racked up hundreds of millions of views by releasing in parts rather than full binges, proving audiences will return for serialized vertical content. Major players like Fox Entertainment, NBCUniversal, Peacock, and Paramount are actively investing, licensing, and developing slates. Fox’s partnership with Dhar Mann and experiments with reality-to-microseries adaptations signal serious studio commitment.
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Why It Matters
Vertical microseries thrive on mobile-first psychology: short episodes (often 1-2 minutes), addictive cliffhangers, and vertical framing optimized for scrolling. They deliver rapid engagement in an attention-fragmented world. As the format matures, it’s blurring lines between creator economy content, studio productions, and social platforms.
The industry isn’t replacing traditional TV or film — it’s adding a powerful new lane. Genres are expanding, talent is crossing over, and economics are shifting toward direct-to-consumer models that reward bingeable storytelling.
As one executive noted, vertical video is here to stay, and all formats are merging. The question isn’t whether microseries will go mainstream, but which breakout hit or influential voice will finally catapult them into global pop culture.
The summit made one thing abundantly clear: the future of entertainment isn’t just longer or bigger. Sometimes, it’s shorter, sharper, and held vertically in your hand. And that future is arriving faster than anyone expected.
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