Big boys foray into the microdrama space while early entrants exit

Yash Raj Films is betting on microdramas even as early entrants exit. The audience is hooked, but monetization remains elusive—forcing studios to balance content costs, retention and the promise of mobile-first storytelling.

Mainstream entertainment players such as Yash Raj Films and Sun TV Network have recently announced a foray into microdrama creation even as early entrants such as Pocket FM have exited the space.
Industry experts say the audience question has largely been answered.

At the same time, for a large studio, it isn't necessarily just about building another subscription or transactional business. It can be a new storytelling format, a way to build and test IP, reach mobile-first audiences and create an additional distribution channel.

Many see these developments as two sides of the same evolution: the market is becoming more demanding about economics, while established entertainment companies are increasingly recognising that the underlying consumer behavior is shared to stay.

“The exit of any one player should not be seen as a verdict on the category.

Microdrama

is still evolving, and like any emerging format, platforms are workingthrough the right balance of content costs, audience acquisition, retention andmonetization,” said Azim Lalani, co-founder and chief business officer, BULLETMicrodrama.

“The entry of established entertainment companies adds visibility and legitimacy to the space. It signals that microdrama is increasingly being recognised as a distinct story telling and consumption format with long-term potential,” Lalani added.

Beyond Bollywood

To be sure, many do not necessarily see this as Bollywood versus start-ups.
Hemant Kaul, partner and leader, research and insights, BDO India said for a large studio, the value could come from audience acquisition, IP incubation, franchise creation, marketing or eventually moving successful properties into other formats.

For pure-play start-ups, the bar is therefore higher: they need to build both the content engine and the business model. However, start-ups retain an important advantage: they are typically more native to the format—faster at testing storylines, using consumption data, producing at high velocity and understanding mobile-first storytelling.

“The biggest advantage of a specialist microdrama company is the speed oflearning. You can make multiple creative bets, understand audience behaviour, loop. That is fundamentally different from traditional film or television production,”Ali added.

Source: Livemint