TikTok is diving into the buzzy micro drama space and has added a section where you can binge on bite-sized series without leaving the app.
The TikTok Minis section features “lightweight, in-app mini programs that let users access experiences and content without leaving TikTok,” a TikTok staffer recently posted on LinkedIn. That tab has both “mini games” and over a dozen apps for “mini dramas,” otherwise known as micro dramas or verticals.
It’s a boost for these low-budget, made-for-mobile shows — movie-length soapy titles chopped into short episodes — that grew out of China and have gained popularity in the US. Plots often revolve around tropes like badly behaving husbands or werewolf romance.
“This format may reduce early-funnel friction by letting audiences sample episodes inside TikTok before any off-platform step,” the TikTok staffer wrote of the TikTok Minis program. The post is no longer available.
One person who has privately discussed the Minis program with TikTok said the company views it as a way to build on its success with TikTok Shop, which has established itself as a major social commerce feature.
The short drama apps mostly operate on a freemium model, where users are prompted to pay — often $10 or more per movie — after watching about eight to 10 episodes. They also often offer subscriptions, which can run $40 to $80 a month, for unlimited viewing. With TikTok Minis, there’s a wrinkle: There’s often a 10% discount that incentivizes viewers to stay within the TikTok app rather than click away to the short drama app itself.
The Minis feature could appeal to lesser-known apps that hope to use TikTok’s massive audience to grow their reach. Those with well-established audiences may prefer to keep them on their own platforms, where they can control monetization. Notably, the two biggest players, ReelShort and DramaBox, aren’t represented in the Minis section.
TikTok has also encouraged short drama makers to use its “series” feature, which lets them add paywalled videos to their TikTok accounts. ReelShort and the fast-growing Netshort are among those using that feature.
TikTok has pitched micro drama producers on making their offerings free
Additionally, two micro drama producers told Business Insider that TikTok pitched them on sharing full, original episodes on the platform — unpaywalled — in exchange for a share of ad revenue. One of them said TikTok offered to pay a licensing fee (up to $10,000 for an original series) plus a share of ad revenue.
The two producers expressed doubts that the economics of TikTok’s revenue-sharing proposal, which would represent a fundamental shift in their business model, would be effective. In theory, the Minis section could help expose micro dramas to new audiences and lower their marketing costs. However, it was unclear whether the licensing and unspecified ad revenue would cover the production costs, which typically range from $100,000 to $300,000 for a full-length movie.
A third verticals producer, Thom Woodley, said the Minis section could help provide an on-ramp for Westerners who might not want to leave the platform for an app they’ve never heard of.
“Paying via TikTok, with subscriptions, for example, is something that people may trust more,” he said.
Micro dramas aren’t new to TikTok’s owner, ByteDance. TikTok’s Chinese counterpart, Douyin, introduced vertical dramas to its platform, and ByteDance has its own vertical drama app called Melolo. (After a drawn-out ownership limbo, TikTok recently reached an agreement through which it will avoid a ban by getting a new cohort of US part-owners via a joint venture.)
“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,” said Hernan Lopez, founder of streaming consulting firm Owl & Co.
One of the micro drama producers said that if TikTok succeeds in transitioning micro dramas to a non-paywalled model and shifting viewing to its platform — as ByteDance has done in China — it could reorder the industry.
Short-drama apps are on track to make $3 billion in revenue this year globally (excluding China), nearly triple the year before, Owl & Co. estimated. The Hollywood establishment and Big Tech are taking note as they seek the next wave of audience growth.
In the first big move by a Hollywood studio, Fox invested in Holywater, a Ukrainian company behind the micro drama app My Drama. Disney said last month it’s in talks with micro drama app DramaBox to adapt young adult fantasy novels into original microdramas for its media platforms and is exploring adapting music albums into vertical shorts. ReelShort said it has been exploring ways to co-create with Paramount Skydance.
