The market for micro dramas, which are short, episodic, mobile-first video content, is projected to grow to $4.5 billion by 2030, implying 31% annualised growth, outstripping traditional over-the-top (OTT) and other video formats, says a report by the venture capital (VC) firm Lumikai.

The format, which has drawn increasing investor interest recently, has already scaled to nearly $300 million in 2025, making it the fastest growing segment in India’s digital entertainment market, the report added.

The segment’s rapid rise lies within a broader interactive media market that reached $13.8 billion in 2025, growing 17% year-on-year.

Founded in 2020, Lumikai is an India-focussed early stage VC firm that invests in interactive media and gaming companies. It has backed startups across sectors such as gaming, digital content, and social and community apps.

According to Lumikai, the growth is being driven by strong user engagement metrics. Despite their short duration — typically 30 seconds to three minutes — micro-dramas clock around 60 minutes of daily consumption, which is nearly 77% of the time people spend on OTT platforms.

However, monetisation remains relatively slight for the category. Micro dramas generate about $15 in annual revenue per paying user (ARPPU), compared to $35 for OTT platforms.

Even so, micro drama platforms have reached about 450 million monthly active users, or roughly two-thirds the number for OTT outfits, showing strong user acquisition and retention.

The report attributes the rise of the segment to tailwinds like India’s more than 877 million smartphone users, low data costs, and a payments ecosystem dominated by the Unified Payments Interface (UPI), which accounts for 85% of all transactions.

Lumikai also says that usage has migrated from real money gaming (following its ban) to other formats such as micro dramas, which saw a 40% increase in daily time spent among such cohorts.

Platforms such as Flick TV, Eloelo, Kuku FM, Chai Shots, ReelSaga, and ShareChat are among the early movers in this segment.