The State of the Vertical Drama Industry
The first industry report on the vertical series audience
Looking at behavioral data from two of the leading microdrama apps in the West, HOLYWATER TECH and Owl & Co have joined forces to publish the released “The State of Microdrama 2026” report.
Key takeaways include:
Owl & Co pegs the global vertical video economy (ex-China) at $150 billion in 2026, up 41% in a year.
HOLYWATER TECH’s male audience grew 28x in seven quarters: from 1.1% to 30.3% of monthly active users on MyDrama, upending the category’s “female-only” reputation.
Vertical series are eating into prime time: 70% of My Drama viewers watch in bed before sleep, and heavy users now average 13.1 hours a week, up from 9.5 just five months ago.
AI-generated series are converting and retaining like the real thing: MyMuse (Holywater’s platform for AI generated series) converts users to paying subscribers at 23.6% vs. 23.9% for live-action My Drama and on flagship titles, 9 in 10 paying subscribers are still watching after 100 minutes.
The report also suggests microdrama is no longer the right term (hello, Behind the Verticals). “A category that spans many genres needs the name of a format. We are calling it vertical series, and the platforms that host it are vertical streaming services,” says Anatolii Kasianov, Co-Founder and Co-CEO of HOLYWATER TECH.
What are your thoughts on the report? Anything that surprised you? Let us know in the comments.
👀 Spotted:
BuzzFeed Studios & MuVPix set 100-title microdrama production pact.
MIPCOM CANNES Unveils microdrama and vertical content lineup.
Paramount+ is moving into micro dramas as Hollywood falls in love with short video.
AI is writing, acting and producing China’s minidramas. It’s shaking a $14 billion industry.
Producers Alon Shtruzman and Scott Einbinder launch vertical studio New Short Media.
RENÉE Cosmetics explores micro-drama format in new campaign with Orry.
Globavend signs global distribution agreement with DramaBox.
Vertical drama star Nick Skonberg explains why his upcoming microdrama film will be his last.
Job opportunity: Spanish-speaking vertical drama directors based in North America for a major brand campaign.
Speaker opportunity: Wenwen Han is hosting a European edition of the Short Drama Alliance Q3 2026 Online Forum in September. Theme: Beyond Translation: Creating Authentic Short Drama for European Audiences. Speaker applications are open.
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She Writes Under the Tuscan Sun will take place October 14–19, 2026. It is an intimate six-day screenwriting retreat where women writers can develop their projects, receive mentorship, participate in writing sessions and group feedback, and connect with a supportive creative community. There will be a dedicated Vertical Scripts track focused on short-form, digital-first, and vertical series storytelling.
The retreat includes accommodations at a private Tuscan villa, meals, workshops, one-on-one sessions, a welcome wine tasting, a pasta-making class, a local market visit, and group transportation from Florence.
You can find more information here. If you mention Behind the Verticals in the notes when you book, the organizer, Once Upon A Script, will make a charitable donation.
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