• by Wayne Friedman , Staff Writer, Yesterday

As microdramas continue to see booming growth in the U.S. and around the world, what explains this global media phenomenon?

Think about the cost of hiring actors and offscreen production professionals for this type of content. It’s not very high.

There could be savings of between 60% and 70% -- totaling $40,000 to $80,000 for an entire 60- to-80-episode season for professional AI productions, according to Axis AI Studios. 

Other AI production companies, including Lume Studio, estimate the savings could be far less ($3,000 to $18,000).

According to a new report from Owl & Co., in the third quarter this year, two-thirds of the top 20 microdramas released outside China were AI-generated.

In China itself, more than 95% of microdramas were AI-generated.

In the U.S., there is major concern over declining job opportunities among TV and film workers, according to a report in The Hollywood Reporter.

Much of this cost savings comes from short serialized video series that produce episodes around one-to-two minutes in duration.

The business has evolved into paid apps and free apps. Both paid and free microdrama apps can have advertising content.

Top paid microdrama apps are Chinese/Asian-owned companies DramaBox, ReelShort, NetShort, and DramaWave.

ByteDance -- the parent company of social media app TikTok -- owns PineDrama, which runs free content on the TikTok platform.

The strongest-performing microdrama, according to the Owl & Co. report, is ReelShort’s “The Great and Powerful Genie” -- a supernatural tale, featuring a ancient genie, a wealthy family, an ungrateful spouse and some final wishes.

In second place is a fantasy title from DramaBox -- “Deny Me, Dragon King” -- followed by DramaBox’s “Married to the Hidden Dragon King.”

Microdrama content generally focus on romance, billionaire/CEO dynamics, revenge, fantasy, and family drama.

Consumers can buy microdramas per episode through subscriptions.

They can also get rewarded with “virtual coins” from an app if they watch 30- to-60- second video ads. Depending on the value, those coins can unlock an entire single episode.

While the total global market for microdramas is valued at $11 billion to $14 billion, advertising makes up a small part of it, representing around $1.5 billion to $3.0 billion globally.

And in the U.S? That might be around $150 to $300 million annual for direct in-app advertising, according to industry estimates.

While China is the largest and fastest-growing market, analysts may consider whether microdramas can aspire to the same acceleration in terms of growing media U.S. channel.

This would need to operate against mounting criticism from industry professional and performers --and consumers -- of anything AI-related.

In other words, can microdramas be major TV-video revenue generators -- without the drama?