Episode Overview

Podcast: The Town with Matthew Belloni
Episode: Should Hollywood Take the Microdrama Boom Seriously?
Date: February 12, 2026
Host: Matthew Belloni
Guest: Xi Kong Zhu, Head of Studio, Drama Box (LA)

In this episode, host Matthew Belloni is joined by Xi Kong Zhu of Drama Box to examine the rapid ascent of “microdramas”—short-form, mobile-first, vertical video series—as a potent and highly profitable new entertainment market. They delve into the mechanics, business models, audience demographics, creative processes, and cultural impact of microdramas, and explore what their popularity means for Hollywood’s future.

Key Discussion Points and Insights

What Are Microdramas? (00:55-05:28)

• Definition and Market Growth

  • Microdramas are serialized, mobile-first dramas with episodes running 1–3 minutes, typically released in batches for binge consumption.
  • Originated from Chinese web novel fandom culture; now a multibillion-dollar global market (projected to hit $26B by 2030).
  • US microdrama market leaped from $819M in 2024, projected to $3.8B by 2030.

• Business Model

  • Freemium viewing: Initial episodes are free; viewers pay (via microtransactions or subscription) to unlock the rest.

• Notable Company

  • Drama Box: Singapore-based, LA studio, $55M monthly revenue (2025), 7M daily users.

"If social media clips were crossed with serial romance novels... Short bursts of content, often one to three minutes, designed for mobile viewing and to get you hooked."
— Matthew Belloni (01:24)

Audience Demographics and Shifting Trends (05:28-06:47)

• Initial Demo: Primarily women 45+ (70% early on).
• Current Trends: Surge among 18-34 women (now 46%), but biggest spenders are still women 35-55 in US/UK.
• Genre Breakdown:
  • Heavy emphasis on romance and emotional drama (“badly behaving billionaires” tropes).
  • Gradually diversifying into family drama and more male-oriented stories, but emotion-driven drama is still dominant.

"But the highest spender right now are women aged 35 to 55, particularly in the US and the UK."
— Xi Kong Zhu (05:44)

Why Now? Remembering Quibi and the Cost Structure (07:20-10:10)

• Quibi Comparison:

  • Quibi failed due to high costs, separate app friction, and overproduced “TV-quality” shorts.
  • Microdramas succeed on shoestring budgets (“$2,000 per minute” production average), shooting for mobile screens with minimal locations and high emphasis on attractive actors.

• Production Pipeline:

  • Projects managed in bulk; Drama Box oversaw 80+ productions in a year.
  • Non-union labor common, with lead actors initially paid $400–$500 per 12-hour day (top stars now up to $2,500/day).

"Obviously you are not using union labor, you are not using locations... But you oversee... how many do you oversee now?"
— Matthew Belloni (08:33)

"Now we can do 1080p like before. But still, I think what matters shifts when you're doing a mobile first content… you don't need a vast location anymore because the screen is so narrow."
— Xi Kong Zhu (09:10)

Unions, Talent, and Industry Gatekeeping (10:47-12:43)

• Market opened up due to labor strikes and lack of mainstream opportunities (early 2023).
• SAG released a specific agreement for vertical drama in 2025, acknowledging the format’s unique status but with unclear long-term union implications.
• Actors and creatives use microdramas as a pipeline for employment, not necessarily as an “endgame” for Hollywood aspirants.

The Microdrama Creative Process (12:56-15:02)

• Distinct Storytelling Style:
  • Heavily emotional, “not plot driven.”
  • Roots in visual novels, web novels, and interactive fiction games.
  • Writers are often from gaming and digital fiction backgrounds rather than traditional film/TV.

"It is so mobile driven, it is so emotional driven. So it's not plot driven...I think it is different than a lot of things that are taught in film schools right now."
— Xi Kong Zhu (14:07)

• Production Timeline:
  • Script to screen in about 4 months:
    • 1–1.5 months script; 3–4 weeks prep; 7–10 day shoot; ~1 month post.

Industrial Scale and Hallmark Comparison (15:02-16:07)

• “Hallmark holiday movie pipeline” as an apt analogy.
• Crews and talent often come from Hallmark; rapid, lean, formulaic production.

The Role (and Limits) of AI (17:38-19:35)

• AI is already assisting with post-production and VFX.
• Scriptwriting via AI not yet mainstream—creativity, tone, and emotional resonance are lacking from generated scripts.
• Strict ethical boundaries: No AI-generated actors.

"AI has been very, very helpful for post production, for the post production workflow… but you know, like, we know how cautious we want to be around this area."
— Xi Kong Zhu (18:49)

Why Hollywood Should Care (20:02-22:31)

• Increasing Institutional Interest:

  • Disney and Fox have stakes/investments in microdrama platforms.
  • Mainstream media starting to recognize the potential and profitability.

• Appeal for Filmmakers:

  • Drastically short development/release cycle (“several shows in four months”), high creative frequency.
  • Ability to iterate quickly and use data for decision-making.
  • Not a replacement for traditional media—but complementary and a "future of storytelling" for a new kind of storytelling outlet.

"This is high frequency narrative... in legacy media you develop a story and you make it in, you know, five to six years, we make several shows in four months. And on day three of the release, we're able to learn whether it's a hit or it's a flop."
— Xi Kong Zhu (21:20)

Customer Acquisition and Marketing (22:31-24:54)

• Customer Acquisition Cost is the major business risk.
• Marketed by buying traffic on social media (not traditional media buys).
• Clips and punchy moments are cut as highly targeted ads on TikTok, Instagram, YouTube, etc., converting viral attention into paid consumption.

"We're buying traffic on social media platforms to drive traffic to our apps so people can discover the shows that they might enjoy. And that is entirely different from how legacy media operates."
— Xi Kong Zhu (23:32)

Platform Competition and Threats (25:22-26:31)

• Why not just do it all on YouTube/TikTok?
  • Microdrama platforms DO monetize via YouTube/TikTok, and those giants are moving in.
  • But Drama Box and competitors build proprietary value by controlling the user experience, monetization, and rapid production at scale.
  • The line between platforms is blurring.

Industry Perceptions and Future Anxiety (26:38-27:34)

• Hollywood’s curiosity trumps skepticism for now.
• Nervousness from legacy players regarding cost structure and potential market displacement.
• Ongoing debate over union and labor implications.

Notable Quotes & Memorable Moments

• “Hot people can go a long way.”
  — Matthew Belloni (10:01)

• “It is so mobile driven, it is so emotional driven...so it is basically, I think it is different than a lot of the things that are taught in film schools right now.”
  — Xi Kong Zhu (14:07)

• “This is high frequency narrative... you develop a story...in five to six years, we make several shows in four months. And on day three of the release, we're able to learn whether it's a hit or it's a flop.”
  — Xi Kong Zhu (21:20)

• “We're buying traffic on social media platforms to drive traffic to our apps so people can discover the shows...And that is entirely different from how legacy media operates.”
  — Xi Kong Zhu (23:32)

Timestamps of Important Segments

| Timestamp | Topic | |-----------|-------------------------------------------------------------| | 00:55–05:28 | Definition of microdramas, explosive market growth, and Drama Box profile | | 05:28–06:47 | Demographics: who watches and how audience is shifting | | 07:20–10:10 | Quibi comparison, cost structure, and how microdramas are so cheap to produce | | 10:47–12:43 | Union/guild issues, talent flow between industries | | 12:56–15:02 | Writing for microdramas, creative process, and production timeline | | 15:02–16:07 | Production pipeline compared to Hallmark movies | | 17:38–19:35 | AI’s place in microdrama writing/production | | 20:02–22:31 | Why Hollywood should (and is starting to) take notice | | 22:31–24:54 | Marketing, customer acquisition, and difference from legacy media | | 25:22–26:31 | Competition from YouTube/TikTok, platform dichotomy | | 26:38–27:34 | Industry perception: curiosity, anxiety, and labor issues |

Conclusion

The episode compellingly illustrates how the microdrama boom is disrupting traditional entertainment paradigms, offering ultra-fast, emotionally-charged serialized stories to a global, mobile-first audience. While the economic and creative models are entirely distinct from legacy Hollywood, the format is gaining rapid traction—and legacy studios as well as unions are taking notice. Whether microdramas are a passing craze or a permanent fixture, this is a space “everyone in town” is watching—and, increasingly, joining.