Crisp, sleek, and vertical – the macro trend in the world of entertainment is unfolding in a jiffy – in the form of microdramas.
It took off a little later than in China, where the concept of mobile soap operas was fostered and flourished, but India seems to be catching up fast with the fad. Inc42 recently covered this trend to understand what was fuelling India’s next OTT wave, only to be intrigued by the business model and content strategy of the players.
Up until now, social media platforms like TikTok, Instagram and Facebook have been the breeding ground for such short-form videos, but as these videos evolved further into bite-sized nuggets of serialised storytelling, much seems to have changed on the horizon. An entire tide of professional content producers has swarmed in to make a living from this trend.
Not to mention, these serials span from 60 to 100 episodes, each of 30 seconds to 120 seconds duration – perfectly suited for the vertical screen format.
“The entire content consumption format has changed. The only form of content being consumed across all sections of society today is reels. From homemakers to drivers, security guards, and professionals like you and me – everyone is watching short-form videos,” Anshuman Misraa of Reelies told Inc42. A veteran in content creation for 20-25 years, Misraa founded the startup last year as a bootstrapped early-mover in the domain.
True to what he said, Indian microdramas have generated over 5 Mn downloads on App Store and Google Play Store of around 50 series with 10 to 60 episodes each of 90 to 180 seconds across romance, fiction, drama and sitcom, according to an EY-FICCI report.
Microdramas unfolded at a time when the uptake of traditional formats of entertainment began losing charm because of their spiralling costs and the need for long time commitments. “It takes half-a-day to watch a two-and-a-half-hour movie at a multiplex and you need to shell out something like INR 2,000-2,500. Watching a series on an OTT platform demands at least 10-15 hours, and you tend to lose track if you pause in the middle,” he pointed out, explaining the need for on-the-go entertainment that’s cheaper and shorter.
Misraa spotted the trend shaping up in January last year and started working on it. The success of microdramas in China into a Yuan 68 Bn (approximately $9.3 Bn) industry, and their fast sweep in the West enthused the seasoned content creator.
“What really excited us was that, unlike traditional OTT where you’re up against giants like Netflix, Prime Video, or Hotstar, or social platforms where you’re competing with user-generated content on Instagram or Twitter, this was a space we could carve out for ourselves,” Misraa said. “The world today is hooked on to reels. Even platforms like Twitter and LinkedIn have adapted to this format.”
Misraa thought of Reelies when the vertical soap operas began shaping into a trend. He was joined by scriptwriter Anshumali Jha, who had been with him since 2017 when Misraa was running a production house of his own. They found a third cofounder in award-winning writer and director Madhu Toolsidas as Reelies was ready to be rolled out.
Rage Of Romcoms: The Demographic Sweetspot
Chinese brand consultancy Miaozhen Systems found the primary audience for microdramas is aged between 25 and 54, with a significant presence of Gen Z (18-24) and working age (25-40) consumers. Specifically, 75% of microdrama viewers are 25 to 54 years old, a LinkedIn post said on the findings.
In China, the median age of the population is 38 years, as against 28 years in India, where a 377 Mn-strong Gen Z makes up almost 40% of the 1.45 Bn populace. Together with the millennials, they are expected to make up as much as 46%, or about $1.8 Tn, of consumer spending by 2035, according to a report by Boston Consulting Group and Snapchat.
“Romance is the best bet for such an audience where we are aiming at viewers aged between 18 and 24 years, and it plays up wonderfully in this format. Going forward, we hope to expand the target age group to 44 years,” Misraa said.
“If you look at the Chinese app ReelShort or platforms like Pocket FM or Kuku FM, the standard tropes are common. For example, stories based on hidden identities, like a guy who’s secretly a billionaire and doesn’t even know it himself, until one day his life changes. Then there are contract marriage stories. And a vampire-type thriller series. But at the core, all of them are romance.”
Then, what makes Reelies different from its league?
Original stories. “We’re neither copying nor licensing content from Chinese platforms and dubbing it,” claimed the founder. Until now, it has been generating content primarily in Hindi, while it has dubbed a few shows in Marathi and Kannada, too.
The platform puts up 10 episodes every week across different series. It typically breaks a 50-episode series into five or six parts and releases them in regular intervals, instead of putting up the entire show at once.
Since December, when it went online, the platform has onboarded about half-a-million registered users. While 95% of them are Android users, the rest are on iOS. In terms of engagement, it records close to 3,000 hours of cumulative watch time a day.
“We were surprised to see there wasn’t a dip even during the IPL. In fact, viewership has grown consistently. But Sunday is the best-performing day of the week, we consistently hit record viewership,” Misraa said.
Among the existing sub-genres, hidden identity stories have hooked the audience well on the platform. One of its shows, Main Hoon Millionaire, has clocked 5 Mn views in little over a month. To ramp up organic traffic, it casts its lead actors who are mega influencers from Instagram.
The app sees strong traction from the Hindi heartland as well as in Gujarat, Maharashtra, and Punjab. The platform plans to launch original content in some regional languages like Telugu, Marathi, Bengali and Gujarati.
Reelies has seen downloads in 176 countries, but 90–95% of its user base is Indian. It finds many takers in Bangladesh, Nepal, Pakistan, and a small but visible footprint in the US and Canada.
Dreaming of the long haul, the startup wants to eventually produce original content in English, Spanish and Arabic, opening up newer geographies.
Backstage Benefits: Lean Costs, High Quality, Growing Consumers
The macros behind microdramas are interesting. While their cost of production is a meagre fraction of that of a traditional soap opera for an OTT platform, the subscription, too, costs a dime a dozen for the user.
The vertical format radically changes the production process and the economics. Only the part of the frame that can be seen needs to be styled and art-directed, limiting the number of sets and on-screen characters.
“You can’t put more than three or four people in a frame. So, casting is tighter, and you only dress what the camera sees,” said the founder.
This lean production approach means enormous cost savings. Actually, the startup’s entire yearly content creation budget is less than the production cost for one single mainstream OTT show, which typically stands at INR 40 Cr to INR 50 Cr.
But, Misraa was quick to claim that low cost doesn’t necessarily mean low quality. “Microdramas do not equate to cheap content. We don’t cut corners on quality. The viewer is intelligent and can immediately identify poor video – they’re consuming everything from Reels to big-budget movies,” he said. “It’s all about optimisation, not compromise. Low-cost, high-content is the game.”
Time overrun is also nearly ruled out in the making of microdramas. The script is written within seven days by a specialised team following a fixed episode structure, and filming takes around 10 days. Since background settings are less critical in vertical format, producers often select a single location that can be made to look like various places just by changing camera angles.
Reelies started with a freemium model to monetise its content. Earlier, the user could either watch ads after every two episodes or subscribe to go ad-free. Now the platform has converted entirely into subscription-only offerings. After five episodes of free watch, the viewers need to subscribe to watch further.
One can buy a subscription for INR 10 for a day, INR 30 for a week and INR 60 for a month. Around 60% of users opt for the daily plan, 25% go for monthly and 15% choose the weekly tier. The platform has so far onboarded around 18,000 paying subscribers.
“Everyone is still trying things out – whether coin-based unlocks or subscriptions. But, within a year, the models will settle. What’s certain is that our audience is already paying. And that’s a fantastic place to be,” the founder said.
The platform aims to produce 50–60 original programmes in its first fully operational financial year, FY26, and ramp it up to 150–200 shows in the next three years. It has set an ambitious target of onboarding 2 Mn registered users, with at least 20% converting to paid subscribers, in the first year itself. To drive this growth, the platform is toying with a subscription-only model, expected to go live by the end of the week. But that’s just one part of their strategy.
Microdramas, in fact, have more in common with mobile gaming than Hollywood.
Taking a cue from mobile gaming apps, particularly those of Chinese origin, some creators like Reelies are testing a daily episode limit model. Under this, users can watch 10-12 episodes for free each day. Once they hit the cap, they either pay to continue or wait 24 hours for the next batch to unlock.
Cliffhangers are pivotal in user retention and monetisation in this format. For the Reelies team, micro-payments and content-led nudges are the key levers for building a sustainable and scalable monetisation engine, Misraa said.
But, will it be a game-changer? “It’s all about habit-building and engagement,” he said. “Microdramas are designed with tight climaxes that make you want to watch what happens next. That urge pushes people to pay, it’s a proven hook.”
From Playhouse To Playbook: A Showstopper In The Making?
India had around 450 Mn short-form video users at the end of 2024. The number, according to the EY study, will surpass 600 Mn by 2027, throwing open a huge market for micro episodic content platforms.
Over the next three years, at least 20 new or existing apps are likely to enter this space, eyeing both domestic and global audiences and, given India’s diverse linguistic landscape, platforms offering regional language content will have an edge over their peers.
Reelies zeroes in on content, as it races against startups like ReelSaga and Kuku FM’s Kuku TV. “Users don’t come for tech, they come for what they can watch. Netflix, Prime, Hotstar – each one has a content identity. That’s what drives engagement and habit,” Misraa said.
Drawing a parallel with traditional television, he explained how Star Plus became a household staple because of its specific show formats. “Over time, viewers build habits. We want to replicate that – where opening our app becomes part of the user’s daily routine.”
Even over-the-top (OTT) platforms have begun adopting microdramas in their content to attract new audiences and retain them in an increasingly competitive landscape.
Reelies has thrashed out a roadmap that includes new formats and AI-powered creation and personalisation. While AI hasn’t yet been integrated, it’s a key part of their long-term vision. “In every new industry, there’s an initial flood of players. But eventually, only four or five remain. We’re building for that endgame, and we believe we’ll be one of the survivors,” said the founder.
Hogging The Limelight: Scripting Blueprint For Success
“R for Reimagining the world of storytelling. R for Redefining the way we consume content. R for Reelies.” That’s how the startup scripted its overview on social media app LinkedIn. The advent of microdrama has indeed revolutionised storytelling and redefined content consumption habits.
“For Reelies, innovation and variations are the two most critical aspects for creating content that can outlast the rising competition,” said the founder, as his brainchild races to sign up 2 Mn users by the time it completes one year this December.
The global market for microdramas is expected to average a 7.1% growth rate through 2024 to 2030, when 95% mobile users in India will be armed with smartphones, counting above 1.2 Bn, and the country’s per-capita GDP will surpass $4,000, significantly boosting discretionary spending.
But the trick lies in the conversion of free viewers into subscribers. “We need to constantly rejig the subscription model for long-term sustainability and profitability,” Misraa said. “We are deeply focussed on creative content to avert any threat of market saturation, while our push for regional content will help us reach a wider demography.”
Legendary filmmaker Alfred Hitchcock had said drama was nothing but life with the dull bits cut out. That’s what makes it crisp and cracking. In a rapidly evolving world of shrinking attention span, Reelies will have to rely on its agility to adapt to the changing preferences of its viewers and recreate its content for an evolving global stage that’s expected to unleash a $12 Bn opportunity by 2030 from $6.5 Bn today.
[Edited by Kumar Chatterjee]
The post How Reelies Is Serialising Reels To Win India’s OTT War appeared first on Inc42 Media.