Microdrama apps chase telco bundles as subscription growth lags despite download surge
Mumbai: Microdrama platforms and telecom operators are increasingly exploring partnerships and aggregation models to scale up subscriptions, as the rapid launch of multiple apps in the category leads to growing fragmentation, according to industry executives.
Microdrama apps and services, now numbering over 20, have seen sharp growth, with the market reaching an estimated $260 million, according to Lumikai. Consumption of microdrama content, along with app downloads, has also risen significantly.
According to Sensor Tower, India accounted for 11% of global microdrama app downloads in Q1 2025, with 35 million downloads, marking a 113% quarter-on-quarter increase. However, this surge in downloads has not translated proportionately into paid subscriptions, prompting platforms to explore new growth avenues such as telco bundling.
Unlike other digital media formats, microdrama platforms have struggled to establish a viable advertising model. The content is primarily consumed on mobile devices in a vertical format, limiting traditional ad integrations and monetisation opportunities.
Telecom operators, which have successfully bundled OTT services, are now looking to replicate this model for microdrama apps.
Aggregation is expected to reduce subscription fatigue, improve content discovery, and convert high engagement into more predictable revenue streams. For telecom operators, such bundles could also help boost average revenue per user (ARPU) and improve retention through combined data and content offerings, executives said.
"Telcos are looking to bundle services that could lift ARPU. Customer additions have slowed, so the next focus area will be offering services such as OTT, gaming, microdrama and music streaming. Adding new services will help drive consumer ARPU," said a digital media executive, who declined to be named.
India's microdrama market is expected to grow at over 31% CAGR to reach $1.5 billion by 2026 and $4.5 billion by 2030, according to Lumikai. This growth will likely be driven by rising adoption in tier-II and tier-III cities, low-cost AI-enabled production, and frictionless payments enabled by UPI AutoPay, according to EY.
Despite being a nascent category, microdramas have scaled quickly as a structured alternative to doom-scrolling, driven by culturally resonant, cliffhanger-led storytelling.
Nitin Burman, chief revenue officer at Balaji Telefilms, which offers both micro and long-form content on its platform Kuttingg, said, "Microdrama platforms and telecom operators are increasingly looking to collaborate through partnerships and aggregation models to drive subscription growth. With a proliferation of paid apps, consumers are unlikely to subscribe to multiple services individually."
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