Published July 1
China has proven there’s no shortage of viewers for microdramas. What remains uncertain is whether audiences elsewhere will pay for them.
That question is becoming increasingly important as the short-form drama format gains momentum — particularly across Southeast Asia.
Microdrama apps are steadily gaining traction in markets globally, with EMarketer estimating the number of viewers in the U.S. will grow over 130% to 5 million this year. Markets including Indonesia, Thailand and India are also seeing rapid audience growth. But experts say monetization remains far less developed than in China, where consumers are more willing to pay to unlock episodes or complete storylines. As a result, the industry’s next phase may depend on advertisers.
“The real question for 2026 isn’t whether the format grows — that’s proven,” Myat Pan Phyu, sports and microdrama lead at Media Partners Asia, told The Current. “It’ s whether the high-volume, low-revenue markets can close the monetization gap before customer-acquisition costs catch up."
The next short-drama wave
Phyu said the fastest uptick for microdrama has been in Southeast Asia, with Indonesia emerging as one of the clearest examples of the format’s potential beyond China.
“A clear second wave is emerging, where microdrama has stopped being a novelty and is starting to rival mainstream streaming for audience,” she said. “Indonesia is the obvious case; the format has scaled into a mass habit, not a niche.”
But rapid adoption has not yet translated into strong consumer spending.
“India and Indonesia are racking up downloads and watch-time at a pace nobody else matches, but paying behavior is shallow and lags the audience badly,” she said. “North Asia is the mirror image — smaller audiences but far deeper wallets.”
Even so, Phyu said, the popularity of the format continues to climb, largely driven by a young, mobile-first audience and free, ad-supported apps.
“Free ad-supported [microdrama] apps have stripped out the payment barrier in a price-sensitive market and let adoption scale without friction,” she added.
Structural factors driving growth
While consumers’ willingness to pay remains “the cleanest predictor of which markets convert,” Phyu said having the right monetization model is equally important.
“Ad-supported formats win audience in low-spend markets, paywalled unlocks win revenue in affluent markets and the smart operators match the model to the market’s wallet,” she said.
The industry’s monetization strategy is already beginning to evolve, with platforms like DramaBox exploring new programmatic opportunities.
For brands, the format is hard to ignore. Episodes are short and often consumed in binge sessions, creating opportunities for repeated ad exposure and potentially high engagement.
According to Man-Chung Cheung, director of research for Asia-Pacific at EMarketer, this is one of several factors driving the microdrama trend in China and beyond.
In addition to being “bingeworthy,” content quality has improved significantly, with more professional storytelling and tighter narratives helping retain audiences.
“Platforms are using data analytics to optimize pacing, plot structure and paywall timing, making the content highly addictive and monetizable,” he said.
Cheung also points out that the rise of short-form video platforms like TikTok and Douyin has conditioned users to consume vertical, fast-paced content, lowering the barrier to adoption for microdrama both in China and internationally.
Localized stories may drive further growth
As Chinese platforms expand across Southeast Asia, many are opting to use subtitled content in new markets. Phyu says long-term success will depend on whether platforms can develop stories that resonate with local audiences.
“I’d argue local-language supply is the longer-term moat,” Phyu said.
Cheung notes that many leading Chinese microdrama apps like ReelShort and DramaBox have already begun shifting from Chinese-language content toward locally produced programming tailored to regional tastes.
“Their success will hinge on their ability to localize content successfully and navigate content regulations — and overcome geopolitical challenges,” he said.
