According to a new report from Media Partners Asia, microdrama has rapidly evolved from experimental content to a mainstream entertainment format that generates billions of revenue worldwide.
“Micro Drama Economy” reveals that serialized short dramas have become Chinese cultural juggernauts. There, the number of dollars rose from $500 million in 2021 to $7 billion in 2024. This format generated $16.2 billion in China by 2030, representing an annual growth rate of 11.5% of the compound.
The milestone moment arrives in 2025, when Chinese microdrama revenues are expected to surpass the country’s local theatre box office revenue, reaching $9.4 billion.
“Microdrama has evolved from a niche experiment to a multi-billion dollar global category,” says Vivek Couto, executive director of MPA. “Production is cheap, but distribution is expensive, and success depends on speed, scale and repeatable IP.”
The Chinese market has proven particularly robust, with over 830 million viewers consuming microdramas, of which 60% paying or trading content. Three major players dominate the landscape: Bytedance’s Red Fruit, Tencent’s Wechat video account, and Kuaishou’s XI fans. These platforms build dedicated apps integrated into social media and payment systems, leveraging IP from major sources such as 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 cast.
Outside of China, the global microdrama market is projected to generate $1.4 billion in 2024 and reach $9.5 billion by 2030, accounting for a CAGR of 28.4%. The US is leading the international market with $819 million in revenue in 2024, and is projected to rise to $3.8 billion by the end of the decade.
American audiences are twisted towards wealthy urban women, ages 30-60, drawn to romance, CEO storylines and revenge stories. DramaBox emerged as a profitable player, reporting $323 million and net profit of $10 million in 2024. Lilshort won a bigger size in 2024 at around $400 million, but remains unprofitable due to heavy marketing investments.
Japan has established itself as the largest Asia-Pacific market outside of China, with revenues projected to exceed $1.2 billion by 2030, supported by consolidation of line salaries and expanding local production. Southeast Asia and Latin America represent promising growth regions, while India is in an exploratory stage.
Artificial intelligence is increasingly embedded in the microdrama value chain, especially in China, which is used to discover personalized content, fast iterations, genre testing, and create branching storylines. Globally, AI applications are primarily focused on localization and dubbing, but its role in cost reductions and creative experiments is expected to expand significantly.
The revenue mix varies from region to region. In China, advertising is projected to donate 56% of its revenue by 2030, with 39% subscriptions and 5% commercial transactions. The global market outside China remains at 74%, driven by subscription and in-app purchases, with ads rising to 25% and commerce reaching 1% by 2030.
“Chinese ecosystems show that it is possible when content is integrated into social and payment rails, but the US is demonstrating the viability of global expansion,” Couto said. “The winners are operators who control distribution and monetization infrastructure, manage customer acquisition costs, and build sustainable IP pipelines.”
