Ellery Voss sees short drama market nearing $70 billion by 2031

Ellery Voss Advisors released its first independent research report on short drama and short-form video, projecting the category will grow from $12.2 billion to nearly $70 billion over the next five years. The firm says the format is moving into the mainstream as Disney and TikTok expand vertical video distribution and consumer spending strengthens in the U.S. and Japan.

Why it matters: - Short drama is moving from a niche content format into a mainstream entertainment category with major consumer spending potential. - Ellery Voss Advisors projects the market will rise from $12.2 billion to nearly $70 billion by 2031. - The report points to rising in-app revenue, which can signal stronger engagement and better economics for platforms and producers.

What happened: - Ellery Voss Advisors launched with an independent research report on the short drama and short-form video industry. - The report is titled “Short Drama: From Niche to Mainstream, the Global AI Phenomenon.” - The firm is based in New York and Hong Kong. - Disney and TikTok recently announced a global deal to bring fan-created short-form vertical video content from TikTok to Disney+ through Disney’s new “Verts” feature.

The details: - Short drama features high-impact episodes that run about 60 seconds to five minutes. - A typical series includes 60 to 100 total episodes. - Popular themes include romance, family drama, youth topics and workplace drama. - The format emerged in China and expanded rapidly during the COVID era. - China’s short drama market reached $7.0 billion in 2024 and first exceeded the Chinese box office, which totaled $5.9 billion. - Producers are using AI tools to shorten production timelines, cut costs and test storylines in real time based on audience engagement data. - The U.S. is the largest short drama market outside China. - The U.S. leads in-app purchases with average revenue of $4.70 per download, more than twice the global average. - Japan ranks next at $4.13 per download. - Ellery Voss Advisors says in-app revenue is an important measure of audience engagement and return on investment for production spending. - The firm says these revenue yields are attracting global entertainment investors and strategic capital allocators. - For inquiries or a copy of the report, Ellery Voss Advisors can be reached at inquiries@elleryvoss.com. - Michael Tew, Ellery Voss Advisors’ managing partner and co-author of the report, said enhanced feedback loops are driving rapid U.S. adoption and that strong consumer spending metrics are drawing global investors and multinational entertainment companies.

Between the lines: - The Disney-TikTok deal suggests large entertainment brands now see vertical short-form video as a distribution channel worth integrating into their platforms. - AI appears to be a key enabler for faster experimentation and lower production costs in a format built around high-volume content. - The report’s emphasis on monetization, not just viewership, suggests the next phase of competition may center on which platforms can convert engagement into repeat spending.

What's next: - Ellery Voss Advisors expects short drama adoption to keep expanding in the United States and other major markets. - The firm’s projections imply more investment in production, platform distribution and monetization tools over the next several years. - Ellery Voss Advisors says the report is part of its broader effort to build proprietary research that supports client advisory work.

The bottom line: - Short drama is no longer a fringe experiment. The format is gaining traction with consumers, creators, investors and major media companies at the same time.