Why microdrama apps are succeeding where Quibi failed

Microdrama apps—short-form, vertical video shows that originated in China—are experiencing a breakout year in the U.S. market. According to app intelligence firm Appfigures, consumer spending on these platforms has grown:

• ReelShort: Reached roughly $1.2 billion in gross consumer spending in 2025, up 119% from 2024.
• DramaBox: Generated $276 million in gross consumer spending in 2025.

The growth of these platforms stands in contrast to the failure of Quibi, a short-form video platform that raised more than $1.75 billion in funding before shutting down. While Quibi attempted to produce high-budget content, microdrama apps rely on low-cost production and addictive business models. They frequently focus on “romantasy” (romance-fantasy) and use monetization strategies similar to mobile games. These strategies often rely on dark patterns (manipulative user interface designs that trick users), such as prompting users to pay for a weekly ad-free pass costing $20, or purchase in-app tokens to unlock the next one-minute episode. Users are often hooked on free content before being prompted to pay to see what happens next.

Eric Wei, creator economy expert and CEO of Karat Financial, explained the appeal to TechCrunch: “How are they succeeding where Quibi failed? They’re basically OnlyFans for the female gaze. They do romantasy, where the titles are all like, ‘My Alpha.’ This is like ‘50 Shades of Grey,’ but for vertical video.”

The financial success of the format is drawing new competitors and capital. TikTok has launched its own standalone microdrama app, PineDrama. Meanwhile, GammaTime, a new microdrama app, raised $14 million in funding from angel investors including Alexis Ohanian, Kris Jenner, and Kim Kardashian. Another player, the Ukrainian company Holywater, raised $22 million to fund its microdrama app, My Drama.

To keep production costs low, some platforms are turning to artificial intelligence. PocketFM, an audio-series platform, uses AI tools to help writers structure formulaic stories. However, some industry executives see an opening for human creators. Sean Atkins, CEO of Dhar Mann Studios, noted that short-form and vertical video require less overhead than long-form content, which could lead more creators with low-cost production experience to enter the market.

Why it matters

Microdrama apps are proving that addictive, low-cost, vertical-video content can generate massive consumer spending, challenging previous assumptions about short-form video viability.