Key Facts
- ✓ TikTok has launched a 'Minis' section featuring micro dramas and mini games.
- ✓ Short-drama apps are projected to generate $3 billion in revenue globally this year.
- ✓ Micro dramas typically cost between $100,000 and $300,000 to produce.
- ✓ Disney and Fox are investing in micro drama apps to adapt novels and music albums.
Quick Summary
TikTok is expanding its entertainment offerings with the launch of TikTok Minis, a dedicated section for micro dramas. These bite-sized, vertical series have gained popularity in the US after originating in China, often featuring high-drama tropes such as werewolf romance or unfaithful spouses. The new feature allows users to binge these shows directly within the TikTok app, eliminating the need to download separate applications.
The move represents a significant shift in the mobile entertainment landscape. While short-drama apps currently rely on a freemium model—charging users up to $10 per movie or monthly subscriptions—TikTok is exploring alternative monetization. The platform has pitched producers on a model that includes licensing fees and a share of ad revenue, though industry insiders have expressed doubts about its viability given high production costs. Meanwhile, traditional Hollywood studios are taking notice, with companies like Disney and Fox beginning to invest heavily in the format as they seek the next wave of audience growth.
TikTok Minis: A New Home for Vertical Series 📱
TikTok has officially entered the micro drama arena with the introduction of TikTok Minis. This new tab within the app features "lightweight, in-app mini programs that let users access experiences and content without leaving TikTok," according to a TikTok staffer. The section includes both mini games and a selection of over a dozen apps specifically for "mini dramas," also known as verticals.
This integration is a major boost for the low-budget, made-for-mobile shows that have exploded in popularity. These series typically take movie-length, soapy narratives and chop them into short, digestible episodes. By keeping the viewing experience native to the platform, TikTok aims to streamline discovery.
A TikTok staffer noted that "This format may reduce early-funnel friction by letting audiences sample episodes inside TikTok before any off-platform step." The feature is also seen as a strategic extension of TikTok Shop, the platform's successful social commerce tool, aiming to replicate that success in the entertainment sector.
"This format may reduce early-funnel friction by letting audiences sample episodes inside TikTok before any off-platform step."
— TikTok Staffer
Monetization Models and Industry Skepticism 💰
The micro drama industry is currently dominated by a freemium model. Users typically watch 8 to 10 episodes for free before being prompted to pay—often $10 or more per movie—or subscribe for unlimited viewing at rates between $40 and $80 per month.
TikTok Minis introduces a competitive twist. To incentivize users to stay within the TikTok ecosystem, the platform often offers a 10% discount on purchases compared to buying directly through a third-party app. This appeals to smaller apps looking to leverage TikTok's massive user base, though established players like ReelShort and DramaBox are notably absent from the Minis section.
However, TikTok is also pitching a fundamentally different model to creators. The platform has approached producers about offering full, original episodes for free in exchange for a share of ad revenue. One producer reported an offer of a licensing fee up to $10,000 plus ad revenue share. Despite these incentives, producers remain skeptical. They question whether the ad revenue and licensing fees can cover production costs, which typically range from $100,000 to $300,000 for a full-length movie.
Hollywood and Big Tech Take Notice 🎬
The micro drama format is no longer a niche curiosity; it has caught the eye of Hollywood and Big Tech. The global market for short-drama apps is estimated to generate $3 billion in revenue this year, nearly tripling the previous year's figures. This rapid growth has prompted major studios to act.
In a landmark move, Fox invested in Holywater, a Ukrainian company behind the app My Drama. Disney has also entered talks with the app DramaBox to adapt young adult fantasy novels and music albums into vertical shorts. Meanwhile, ReelShort is exploring co-creation opportunities with Paramount Skydance.
The format's roots are deeply tied to ByteDance, TikTok's parent company. ByteDance already operates the app Melolo and has successfully popularized vertical dramas on Douyin, TikTok's Chinese counterpart. As streaming consultant Hernan Lopez stated, "TikTok's parent company was instrumental in the popularity of the format in China, and they want to make sure that happens in the US."
The Future of Mobile Storytelling 📈
The success of TikTok Minis could fundamentally reorder the entertainment industry. If TikTok successfully transitions micro dramas from a paywalled, app-specific model to a free, platform-integrated model, it could disrupt existing revenue streams. One producer noted that such a shift could "reorder the industry," mirroring the transition seen in the Chinese market.
For users, the integration offers convenience and trust. Producer Thom Woodley suggested that "Paying via TikTok, with subscriptions, for example, is something that people may trust more," especially for Western audiences hesitant to download unknown third-party apps.
As TikTok navigates its recent agreement to avoid a ban by bringing in US part-owners, its investment in proprietary content formats like Minis signals a long-term commitment to keeping users engaged within its ecosystem. The battle for the "next wave of audience growth" has officially moved to the vertical screen.
"Paying via TikTok, with subscriptions, for example, is something that people may trust more."
— Thom Woodley, Producer
"TikTok's parent company was instrumental in the popularity of the format in China, and they want to make sure that happens in the US."
— Hernan Lopez, Founder of Owl & Co.



