India’s Microdrama Boom Is Here, But Can The Unit Economics Work?

by · Inc42

SUMMARY

  • India has just begun its microdrama journey, with startups entering the space and larger entertainment platforms following suit
  • According to industry experts, 68% of microdrama viewers belong to households earning more than ₹10 Lakh annually, suggesting the format is increasingly becoming a mainstream entertainment proposition for the masses
  • The next two to three years will likely be less about whether microdramas can grow and more about who can capture the value created by that growth
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With short-form content everywhere, a three-hour movie now feels like a commitment. That is where microdramas have entered the picture. 

Think of microdramas as an evolved version of soap operas designed for fast-paced generations, not for television screens, living rooms or two-hour movie slots, but for phone screens. Microdrama episodes are shot vertically and are built around cliffhangers, emotional reversals and rapid storytelling.

The format originated in China, where it has grown into a multi-billion-dollar entertainment business. India, meanwhile, has just begun its microdrama journey, with startups entering the space and larger entertainment platforms following suit.  

The opportunity is significant, as India’s microdrama market is projected to be at ₹650 Cr and is expected to grow at more than 50% annually through 2028, according to the report “Stories, scale and impact: Unlocking India’s media and entertainment economy” by FICCI and EY India.

Microdrama platforms are competing for the same attention as Reels, YouTube Shorts and other short-form platforms, while rising customer acquisition costs and India’s difficult subscription market are putting pressure on their economics. 

A year into the boom, the industry stands at a critical crossroads, asking whether microdramas can turn fleeting attention into a sustainable business.

Not Just Another Chinese Playbook

India’s first year with microdramas has already challenged the assumption that the country would simply replicate China’s playbook. While the basic format remains familiar — short vertical episodes, high emotional intensity, frequent cliffhangers and stories designed to keep viewers coming back — the audience, storytelling and consumption patterns are becoming distinctly Indian.

“India isn’t simply following the global microdrama playbook… it’s creating one of its own. The format may have come from China, but what works in India is very different. Audience tastes, storytelling, languages and even pacing have all evolved in uniquely Indian ways,” said GSN Aditya, COO at Eloelo Group, which runs microdrama platform Story TV.

Talking about the scale, Amit Zunjarwad, chief product officer at ShareChat and Moj, said that 80% of users in the ecosystem prefer microdramas, putting them on par with short-form video. About 86% spend more than 15 minutes watching them every day.

Across Moj, ShareChat and QuickTV, Zunjarwad said that the ecosystem now delivers approximately 900 Mn daily episode plays, equivalent to more than 720 Mn minutes of microdrama consumed every day.

Story TV’s Aditya claimed that users spend more than 95 minutes a day on its platform, while its audience has expanded beyond scripted dramas into reality formats, daily episodic releases and original franchises across five Indian languages. The company says it now has more than 2,000 shows and launches around 150 new titles every month.

According to industry experts, 68% of microdrama viewers belong to households earning more than ₹10 Lakh annually, suggesting the format is increasingly becoming a mainstream entertainment proposition for the masses.

The format is finding traction beyond metros, particularly in smaller cities where smartphones have become the primary entertainment screen. According to the FICCI-EY data, 60-75% of microdrama users are from tier II and tier III cities, while around half prefer content in their native languages.

According to ShareChat, more than 40% of episodic consumption in its ecosystem happens in regional languages. Around 36% of audiences prefer stories based on everyday life, while 34% prefer stories reflecting realities from different parts of India.

In other words, audiences are not simply asking for Chinese-style stories translated into Indian languages. They want culturally relevant characters, situations and narratives. 

Anshuman Mishra, cofounder of microdrama streaming app Reelies, said the category is still being defined, with many platforms and content creators using “microdrama” as a catch-all term for short scripted videos.