China’s entertainment industry is witnessing a dramatic shift, and it isn’t happening inside movie theatres. Instead, it’s unfolding on smartphones through vertical micro-dramas, also known as duanju. These bite-sized shows, made up of episodes that often last less than two minutes, have become one of the country’s biggest entertainment success stories. They have exploded into a billion-dollar business, and their success is now influencing entertainment markets from India and South Korea to the United States.
The industry that surpassed the big screen
Just a few years ago, few believed vertical dramas could become a serious business. According to the South China Morning Post, the industry was worth only 1 billion yuan (around $148 million) in 2020. Fast forward to today, and the growth has been staggering. The Next Web reports that the market crossed 100 billion yuan in 2025 and is expected to reach nearly 120 billion yuan (around $16.5 billion) in 2026.
What’s even more surprising is that micro-dramas now earn more than China’s traditional theatrical box office. Instead of setting aside hours for a film or television series, viewers are fitting these short episodes into daily life, whether during a commute, lunch break or while waiting in line.
Why every episode lasts less than two minutes
Watching a vertical drama feels very different from watching a regular TV series. Instead of hour-long episodes, viewers get 80 to 100 bite-sized chapters, each lasting barely a minute or two. They’re also made at remarkable speed. While traditional dramas can spend months in production, many vertical series are written, filmed and edited within just seven to fourteen days. Every episode is designed to end on a cliffhanger that keeps viewers coming back.
As reported previously by The New Yorker and Rolling Stone, the payment model follows the same strategy. Most platforms allow viewers to watch the first 10 to 15 episodes for free before charging small fees to unlock the rest. Those individual payments may seem inexpensive, but finishing a complete series can cost between $30 and $40, often more than a cinema ticket or even a monthly streaming subscription.
Familiar stories continue to attract viewers
Many of these dramas rely on familiar themes that audiences never seem to get tired of. Underdog stories remain especially popular, with ordinary characters secretly turning out to be wealthy, powerful or hiding an important identity. Revenge dramas are another favourite, where toxic family members, cheating partners or cruel bosses eventually face the consequences of their actions. Romance also plays a major role, with fake marriages, contract relationships and unlikely couples becoming recurring plotlines.
Although the format was once criticised for being repetitive and cheaply made, that perception has changed. Bigger production companies have entered the market with experienced directors, larger budgets and established actors. As a result, many of today’s vertical dramas feature stronger performances, polished visuals and much higher production quality than the early versions of the format.
AI has become the industry’s biggest production partner
Artificial intelligence now plays a central role in the making of China’s vertical dramas. According to The Next Web, AI helps analyse audience preferences, generate story ideas, prepare script drafts and even create storyboards. Work that once required weeks can now be completed in just a few days.
The results are hard to ignore. China’s micro-drama industry is now worth around $16.5 billion and reaches nearly 660 million users. As The Next Web notes, the country has quietly built what may be the world’s first large-scale commercial ecosystem for AI-generated video. While many global studios are still experimenting with generative AI, China’s short-drama industry is already using it as part of its everyday production process. The report even points out that in March alone, China’s AI video sector released more new titles than Netflix has produced throughout its entire history.
AI has also made production cheaper and faster. According to The Next Web, a new AI-assisted or AI-generated short drama is released somewhere in China roughly every 90 seconds. On Douyin, the Chinese version of TikTok, nearly 50,000 AI-native titles were uploaded in a single month. AI-powered translation, dubbing and voice cloning have also helped platforms such as ReelShort, DramaBox and ShortMax expand into international markets while reducing localisation costs by almost 90%.
How production has become faster than ever
The rise of vertical dramas has transformed the way they’re filmed. Instead of relying on large outdoor studios, many productions now use dedicated indoor facilities called Shudian. These spaces are built specifically for vertical content, with every set designed around the 9:16 smartphone screen.
A single studio can include apartments, offices, hospitals and restaurants under one roof, allowing crews to move between scenes in minutes instead of travelling across multiple locations. Once episodes are released, platforms closely monitor audience behaviour. They can see exactly where viewers stop watching, which cliffhangers encourage payments and which storylines lose momentum. Some studios even shoot multiple versions of important scenes, allowing writers to adjust future episodes based on audience response, sometimes with AI helping speed up rewrites while the series is still being released.
Government support is working on improving the industry
As reported Global Times, the National Radio and Television Administration (NRTA) has introduced a formal review system aimed at improving quality, reducing exploitative monetisation practices and encouraging stronger storytelling.
Several local governments are also offering incentives of up to 2 million yuan (around $275,000) for productions that promote regional culture, tourism and heritage. These initiatives highlight how vertical dramas are now viewed as an important part of China’s creative economy rather than simply another online trend.