Playlet: The Rising Star of Vertical Micro Dramas

LAPost/Los Angeles, CA; (August 5th, 2024) – In 2024, the global market for vertical screen dramas is experiencing rapid growth. With the widespread adoption of vertical video platforms such as Instagram Reels and TikTok, the audience for vertical screen dramas has expanded swiftly. Users are gradually becoming accustomed to the vertical viewing mode, which has driven the demand for vertical content. In the second quarter of 2023, vertical micro-dramas began to emerge from China, targeting primarily English-speaking audiences. Market validation has shown explosive growth, with net revenue increasing approximately 300 times year-on-year in 2023.

The development of overseas micro-dramas began in August 2022 with the launch of ReelShort, followed by the introduction of various other micro-drama apps. According to SensorTower, leading micro-drama platforms reached a total of 28.23 million downloads in 2023, with net cash flow amounting to $56.71 million, marking explosive growth compared to 2022. By estimating the daily active users (DAU) of micro-dramas based on the DAU of overseas short video platforms and the penetration rate of micro-dramas, and referencing the average revenue per user (ARPPU) of Netflix and Disney+, the long-term market size for overseas micro-dramas is projected to be between $144 billion and $648 billion, with a neutral estimate of $360 billion.

Playlet: Reels of Tiny Shows App.

Playlet: A New Player in the Market 

Amid the active players in this rapidly growing market, Playlet: Reels of Tiny Shows (hereafter referred to as Playlet) has caught our attention. Unlike other companies with familiar backgrounds, little is known about this product and the team behind it. However, its explosive entry into the market has caused quite a stir among industry peers. In March, Playlet reached as high as 14th place on the US iOS Entertainment category, with its estimated monthly revenue ranking in the top 5 of its field. This impressive achievement came just two months after its launch.

 

In March 2024, Playlet reached 14th place on the US iOS Entertainment category.

Playlet’s remarkable performance has piqued the curiosity of many industry insiders. Since its launch in January 2024, Playlet has amassed over 4 million members, with individual videos garnering over 100 million views. By March 2024, Playlet’s revenue had already surpassed $1 million, reaching this milestone in just two months. This rapid achievement contrasts sharply with earlier pioneers like ReelShort and DramaBox, who took considerably longer to reach the same level of monthly revenue. Playlet’s swift success has undoubtedly set a new benchmark in the vertical micro-drama industry.

Playlet’s ability to outpace its competitors has created significant pressure within the industry. This success can be largely attributed to its founder and driving force, Jian Zhou.

Jian(Phenix) Zhou

MicroshowTime Limited CEO and Playlet Founder. With over 15 years of experience in

the internet industry, Jian has a diverse background in high-level management across

various platforms, including gaming, live streaming, social tools, and e-commerce.

Before founding Playlet, Jian served as the CEO of Huanju Entertainment. She has also

held prominent positions as the General Manager of YY Gaming, Huya Live, and YY

Live. Throughout her career, Jian has managed multiple billion-dollar projects,

showcasing her expertise in internet platform product design and logic.

Jian Zhou, formerly in charge of China’s well-known platforms YY Gaming and Huya Live, left her familiar environment in 2019 to explore new avenues beyond gaming and live streaming. After a brief stint in JD.com’s e-commerce business, she turned her attention to micro-dramas.

“Mature fields tend to lead to fixed thinking and doing things by the book. I don’t like staying in my comfort zone for too long,” said Jian Zhou. Her willingness to step out of her comfort zone and innovate has been a key factor in Playlet’s rapid rise and remarkable success.

“Many internet products focus on leveraging their strengths, but for micro-dramas, it’s the weaknesses that are decisive,” Jian Zhou shared, providing her unique insight as a seasoned internet entertainment professional in the micro-drama industry.

“Coming from a commercialization background, I am highly sensitive to categories with commercial potential.” said Jian Zhou.

Micro-dramas condense stories that span hundreds of thousands of words into roughly two-hour-long series, with each episode lasting only 1-2 minutes. These tightly paced, twist-filled episodes entice users to pay to unlock each subsequent installment. This precise understanding of both commercial logic and user psychology made Jian Zhou realize the potential opportunities in this new format.

Unlike films or traditional TV shows that often showcase a director’s talent and style, micro-dramas are primarily user-oriented. This user-centric approach is a distinct advantage for internet professionals like Jian Zhou transitioning into the micro-drama space.

Playlet’s original productions.

The Rapid Surge of Micro-Dramas in Overseas Markets

 The popularity of micro-dramas in overseas markets has surged dramatically in the past six months. Compared to September 2023, in-app purchase revenue increased by 280% and download volume increased by 220% respectively in February 2024. By the end of February 2024, over 40 micro-drama apps had ventured into overseas markets, amassing nearly 55 million cumulative downloads and generating $170 million in in-app purchase revenue. This explosive growth underscores the immense potential and rapidly expanding audience for micro-dramas on a global scale.

The United States is a critical battleground for the overseas micro-drama market, with over 60% of the total revenue for top micro-drama apps coming from the U.S. This dominance is closely tied to the stronger willingness and ability of American users to pay. According to Sensor Tower data, the average payment per download in the U.S. is six times higher than in other markets.

Southeast Asia is another hot market for micro-dramas, thanks to cultural similarities and a large mobile user base. Currently, micro-drama app revenues are primarily driven by North America, followed by Australia, the United Kingdom, the Philippines, and Thailand. In terms of download volume, the leading market is the United States, followed by the Philippines, India, Nigeria, and Indonesia.

This geographical distribution highlights the diverse appeal and expansive reach of micro-dramas, making them a compelling format in the global entertainment landscape.

Short Dramas are Defined by the weaknesses

“Short Dramas are Defined by Their Weakest Links” Jian Zhou shared an intriguing perspective with us, which she refers to as the “Weakest Link Theory” of short dramas. She attributes this to the numerous stages involved in producing a short drama—from scriptwriting, casting, filming, and post-production to promotion and the final platform experience. Consequently, the ultimate success or failure of a short drama is determined by its weakest link.

Playlet’s explosive growth in March was driven by a hit short drama titled “The Secret Heiress.” While Jian Zhou acknowledged that it fell short of her ideal “S-tier” drama, she noted that it met acceptable standards across all aspects. In an emerging market, such a drama had the opportunity to succeed.

Playlet original short drama: “The Secret Heiress.”

Playlet currently hosts nearly 50 short dramas and boasts its own dedicated overseas production team. It is one of the few companies that consistently films locally and produces high-quality short dramas. The platform releases 4-6 new self-produced dramas each month. According to data.ai, 70% of users for similar apps in the U.S. are female, with significant user bases in the 45+ age group (48%) and the 25-44 age group (39%). Playlet primarily focuses on female-oriented dramas, featuring themes like strong female leads, domineering CEOs, and romantic comedies. By defining a hit short drama as one with over a million collections, Playlet’s success rate for self-produced hits overseas is currently about one-third.

Playlet: A Rising Star in the U.S. Micro-Drama Market

One of the key factors behind Playlet’s rapid ascent in the U.S. micro-drama market is the selection of Jian Zhou as the chief strategist. Additionally, leveraging long-accumulated overseas resources has been crucial in Playlet’s swift rise.

“Micro-dramas are part of the content industry. I believe a core issue is whether you respect the content,” Jian Zhou explained. “Many people treat micro-dramas as a business, producing shoddy work, thinking it’s enough just to have white actors, even if they speak with non-native English accents. Teams that don’t understand local content are bound to be eliminated. Moreover, you need to deeply cultivate the market. People often oversimplify the overseas market, assuming that what’s popular in China will automatically be popular abroad. Finally, you must find a production team that understands micro-dramas. Every step is crucial, and with the high cost of filming overseas, making one or two missteps can be very risky.”

Jian Zhou emphasized that, due to limited resources and funding, most teams cannot afford many trial-and-error attempts. She advises those looking to enter the market to approach the micro-drama business with caution, predicting that about 90% of players will ultimately lose money.

While the top five apps in the same category dominate more than half of the market’s revenue and download share, Playlet’s breakthrough demonstrates that the content industry for micro-dramas is not monopolistic. Good content always has a chance to succeed. At this stage, competition for users is not the main issue; instead, all companies are collectively working to expand the user base.

“Find ways to do everything well, address all the weak points, and I believe the market will reward us.”

In her concluding remarks, Jian Zhou said. (By: LAPost)

 

Note:

*DAU (Daily Active Users): DAU refers to the number of unique users who log in or use an app at least once within a single day. It reflects the daily engagement level of an app. High DAU indicates strong user stickiness and activity, making it a crucial metric for assessing an app’s success.

**ARPPU (Average Revenue Per Paying User): ARPPU measures the average revenue generated from paying users. It is calculated by dividing the total revenue by the number of paying users. ARPPU is an important metric for evaluating the value of paying users and the profitability of an app.

Reference:

Former YY Executive Transitions to Overseas Micro-Dramas, Breaks into Category’s Top 5 Revenue Within 2 Months.

In-Depth Report on Chinese Micro-Dramas Going Overseas: Tapping into a New Blue Ocean Market.