Hollywood Production Slump, Vertical Short Dramas Show Unexpected Growth

Hollywood’s traditional film and television production continues to struggle, but the trend of vertical short dramas designed for mobile viewing is on the rise. With the market rapidly expanding, some Hollywood actors and crew members are shifting their focus towards producing vertical short dramas. Major entertainment companies like NBC Universal and Fox have also begun investing in or producing this type of content.

According to Reuters, Los Angeles producer Craig Williams, who opened a production studio two years ago primarily for music videos and film projects, saw a rapid increase in orders for vertical short dramas. He now operates three production studios and has rebranded his company as Vertical World Studios, catering specifically to vertical short dramas.

Vertical short dramas typically range from 45 seconds to 2 minutes per episode, featuring fast-paced storylines that use suspense to keep viewers engaged. Omdia data shows that the monthly active users for micro-dramas in the U.S. reached 66 million in 2025, surpassing the 26 million in 2024.

Viewing time for vertical short dramas continues to grow. Omdia analysis of Sensor Tower data indicates that the leading platform ReelShort saw a 40% increase in average daily mobile viewing time in the second quarter of this year, reaching around 38 minutes, surpassing the mobile viewing time of Netflix, Amazon Prime Video, and Disney+.

The market expansion has also brought new job opportunities for some Hollywood professionals. Actor Robert Palmer Watkins, who faced a shortage of work due to the pandemic and Hollywood strikes, has found more job opportunities through his participation in vertical short dramas.

Compared to traditional film and television, vertical short dramas have lower costs and faster production speeds. The platform CandyJar stated that a project consisting of 50 to 75 episodes typically takes around 3 months to produce, costing approximately $100,000 to $300,000.

Another platform under Inkitt, Ironblood, utilizes generative artificial intelligence to produce action-themed micro-dramas. These types of productions can be completed in 3 to 4 weeks at a cost not exceeding $60,000. However, the scripts are still written by humans, and live actors also participate in the training of generative AI.

Traditional entertainment companies have also entered this market. NBCUniversal has included vertical content on its Peacock platform, while Fox has invested in the vertical short drama company Holywater, planning to collaborate on producing over 200 vertical works.

Omdia predicted in February of this year that the U.S. micro-drama market’s revenue would reach $1.5 billion in 2026 and nearly $2 billion in 2027.