India’s microdrama market projected at Rs 650 crore, unit economics tested

India's microdrama market is projected to be worth Rs 650 crore and is expected to grow at more than 50% annually through 2028, according to a report by FICCI and EY India. Microdramas are short, vertical episodes designed for phone screens, originating in China and now being adapted for Indian audiences by startups and larger platforms.

Industry executives report strong engagement: ShareChat and Moj's ecosystem delivers approximately 900 million daily episode plays, with 86% of users watching more than 15 minutes per day. Story TV claims users spend over 95 minutes daily on its platform, with more than 2,000 shows and 150 new titles launched each month. About 68% of viewers come from households earning over Rs 10 lakh annually, and 60-75% are from tier II and tier III cities.

Despite low production costs of Rs 10-15 lakh per series, customer acquisition costs are rising as more platforms enter the space. The format competes with Reels and YouTube Shorts for attention, and India's difficult subscription market adds pressure on unit economics. The industry is at a crossroads, testing whether microdramas can turn fleeting attention into a sustainable business.