Unlocking New Monetisation Playbooks and Digital Storytelling Formats

Over the past two decades, Media & Entertainment has become the world’s preferred on-ramp to the digital economy. Affordable smartphones, sub-$1 GB data, and near-universal connectivity have pulled billions online, with nearly a third of their waking hours now spent digitally. In parallel, platforms reimagined both storytelling and content formats, shrinking them into short-form videos, bingeable audio sagas, and now, micro-dramas built for thumb-scrolling.

Each format shift marks a new tipping point – and a new opportunity – for content creators, technology platforms, and investors.

In India, the digital media landscape has been shaped by several transformative trends. With TikTok’s entry in 2017, short video consumption surged, quickly becoming the default format for over half of smartphone users. In this article, we bring forward our perspective on the newest emerging media format that is reshaping how India’s mobile-first audience consumes content: edutainment in short videos and micro-dramas.

1. Edutainment: Learning and Micro-skilling come to Short Videos

Learning in short video format is growing in popularity in India, offering curated content for career acceleration and micro-skill learning. Edutainment platforms leverage short-form video to deliver outcome-driven, regional language content aimed at career-focused youth in Tier 2/3. These platforms are uniquely positioned among other available educational content.

By the end of FY2025, the market for Short Video edutainment is estimated to be US$50 Mn on a monthly run rate basis. In 6 months ending March 2025, the market almost became 8-10x, indicating that the accelerating popularity of the format, more so amongst Tier 2 and Tier 3 users, who are increasingly willing to pay for content on a subscription basis.

Platforms in this space offer microlearning that’s directly linked to job outcomes and career growth, especially for aspirational youth in smaller cities. What makes them pay is the promise of tangible career progress, delivered through short, mobile-first, vernacular content that feels personal, practical, and job-relevant.

“Vertical SFV players enjoy broad-based consumer love due to their user-friendly interface and relevant content”

We observed the following performance metrics in the edutainment space that indicate strong potential for long-term growth

• A niche product, solving for learning and micro-skilling of aspirational youth in Tier-2 & 3.

• Subscription-based recurring revenue (INR 100+ per month), where more than 50% of revenue comes from recurring subscribers

• Steady CAC at ~INR 200, and network and peer-driven referrals working towards driving lower acquisition cost

2. Micro-drama: The Next Frontier of Entertainment in India

Micro-dramas are the next evolution in short video content – emotionally charged, vertical, and serialised stories with each episode delivered in under two minutes. Popularised in China and now gaining momentum in India, they’re built for mobile-first, time-starved users seeking quick yet immersive entertainment. Key characteristics of micro-dramas are:

• Structured storytelling with recurring characters and cliffhangers, unlike generic short videos

• Designed for on-the-go moments like commutes, coffee breaks, and scrolling sessions

• Highly addictive format that drives repeat engagement and builds viewer stickiness

Estimated at US$5.5-6 Bn in 2024, the China micro-drama market has 400+ Mn smartphone users swiping the content format on platforms like Douyin, Kuaishou, ReelShort, and DramaBox.

Riding on the trend of short video consumption and the format almost becoming a default media format for young population, story of micro-drama began in the last 12 months, witnessing cumulative app downloads of 50+ Mn in India. As of May 2025, we saw 15+ apps offering micro-drama, demonstrating the growing demand for the format.

Current adoption trend globally and in India indicates that micro-drama has massive headroom for growth in the next 2-3 years. Why? For 4 Core Reasons.

• Consumer Fit: Bite-sized storytelling aligns with declining attention spans and growing screen fatigue from long-form shows. Suited for on-the-go, time-starved users who want a quick dopamine hit.

• Demand from Bharat & Gen Z: Strong adoption among Tier-2/Tier-3 audiences—students, homemakers, shopkeepers—especially when delivered in regional languages. Strikes a chord with Gen Z raised on Reels, but craving richer, more relatable content.

• Monetisation Readiness: Platforms are experimenting with micro-payments, freemium models, and coin-based unlocks. Indian users are showing growing comfort with paying for premium short-form content, mirroring early trends seen in China.

• Scalable Production & Platform Innovation: Use of technology like generative AI reducing the production time and cost, enabling fast turnaround in scalable genres like romance, horror and mythology. Success will depend on content velocity, freshness, and platform intelligence that would be blending narrative design with tech innovation.
  

Key opportunities for stakeholders in India’s digital media:

• Investors: Back platforms with new-media formats that solve for today’s content realities – shorter attention spans, mobile-native habits, vernacular demand. This is a category-defining moment in consumer tech.

• Entertainment platforms: Double down on Gen Z and Tier 2/3 users with consistent, high-quality, regional-first content. Habit-forming narratives, cliffhangers, and daily drops win loyalty in this fast-scroll economy.

• Current operators in short video platforms: Blend the reach of influencer-led SFV with the depth of serialised storytelling. Build IPs that users follow, binge, and share—especially in love, thriller, and slice-of-life genres.

• Advertisers: Explore new-media surfaces that are already showing high retention and intent. China proves vertical storytelling can be premium – smart brands are embedding natively, not interrupting.

India’s mobile-first content evolution is unlocking new monetisation playbooks and digital storytelling formats with massive scale and sticky engagement. Want the full new-media strategy briefing? Let’s discuss.