The global vertical video business outside China is experiencing steep growth this year. According to the latest report, “The State of Microdrama 2026,” published by Holywater Tech and Owl & Co, total revenues in this sector will reach $150 billion. This represents a year-on-year increase of more than 40 percent, with specialized microdrama applications alone contributing four billion dollars to this sum.
The analysis is based on data from the My Drama and My Muse platforms, supplemented by a survey of two thousand users. According to Hernan Lopez, founder of Owl & Co, it was crucial to connect hard behavioral data with viewer testimonials. It was found that the vertical video format is becoming a direct competitor to traditional prime-time television.
Changes in Viewer Habits and the Rise of Male Viewers
One of the most surprising findings is the rapid diversification of the audience. While in the past content was primarily aimed at women, the proportion of men among users increased from 1.1% to 30.3%. The time and method of content consumption are also changing:
- 70% of viewers watch vertical series just before bedtime.
- 59% of users consume content comfortably from the couch, not just while on the go.
- Active consumers spend an average of 13.1 hours per week watching.
“Observed behavior only tells you what people did, not why. That’s why it was important to supplement the data with user reflection,” Hernan Lopez stated during the report’s presentation at the Vertical Media Summit.
The Future Belongs to AI and New Genres
A significant factor for future development is the integration of artificial intelligence. The My Muse app, which focuses on AI-generated series, shows a high level of user loyalty. A total of 89% of respondents want more AI-created stories. The share of paying subscribers for AI-created content is almost identical to that of classic productions, at around 23.6 percent.
According to Holywater Tech management, AI is the engine that allows testing new genres in weeks instead of months. From original romances, the market is thus rapidly expanding into other areas. The term vertical series is beginning to establish itself for this new segment, distributed through specialized vertical streaming services.