BUSINESS

Chinese Micro-Drama Apps Expand Overseas, But Fierce Competition Hits Profits

Published: Aug. 29, 2025 4:06 a.m. GMT+8

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The shooting site of a micro drama in Dongyang, Zhejiang province, in December 2023. Photo: Zheng Haipeng

Chinese micro-drama platforms are expanding rapidly overseas, but earnings reports from their listed parent companies show profits remain elusive as marketing and content costs surge in crowded markets from North America to Southeast Asia.

Financial disclosures for the first half of 2025 reveal a common theme: revenue is growing, but losses are widening.

Chinese literature platform COL Group Co. Ltd., e-book reader firm iReader Technology Co. Ltd. and internet conglomerate Kunlun Tech Co. Ltd. all reported stronger sales but deeper losses, with their expanding micro-drama businesses still in heavy investment stages.

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Explore the story in 30 seconds

Chinese micro-drama platforms are expanding overseas, with revenue growth but widening losses due to heavy content and marketing costs.
COL Group’s revenue rose 20% but net losses increased 50% to 226 million yuan; iReader’s losses jumped 226% despite higher revenue.
Chinese firms control 95% of the global micro-drama market, valued at $1.2 billion in 2024, with North America as the largest, fastest-growing market.

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Who’s Who

COL Group Co. Ltd.: **COL Group Co. Ltd.** (中文在线集团有限公司) is a Chinese literature platform that entered the micro-drama market in 2021. It operates three overseas platforms—Sereal+, UniReel, and FlareFlow—and holds a 49% stake in Crazy Maple Studio, developer of the ReelShort app. In the first half of 2025, COL Group's revenue rose by 20%, but net losses widened by 50% to 226 million yuan ($31 million) due to increased overseas promotion and content spending.

iReader Technology Co. Ltd.: iReader Technology Co. Ltd. is an e-book reader firm whose revenue increased by 14.6% in the first half of 2025, yet its losses surged by 226%. Its overseas micro-drama app, iDrama, has amassed a library of thousands of short dramas. The company attributes its profitability struggles to simultaneous expansion efforts in both domestic and international markets.

Kunlun Tech Co. Ltd.: Kunlun Tech Co. Ltd. (昆仑万维科技股份有限公司) is an internet conglomerate with a micro-drama platform called DramaWave. DramaWave generated over $20 million in monthly revenue, totaling 580 million yuan in the first half of the year, with an 83% gross margin. Despite strong sales, the company reported deeper losses due to heavy investment in its expanding micro-drama business.

Shanghai Jiashu Tech Co. Ltd.: Shanghai Jiashu Tech Co. Ltd. (上海佳树科技有限公司) is a Chinese firm whose DramaBox platform was selected by Disney's accelerator program in July. This investment highlights its potential alignment with Disney's creative portfolio, similar to past participants like Epic Games.

iQiyi Inc.: Sources close to the Beijing-based video streaming platform **iQiyi Inc.** indicate that the company is preparing to launch micro-drama operations in Southeast Asia. As part of this expansion, **iQiyi Inc.** is actively recruiting local producers to collaboratively develop content for these new platforms.

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What Happened When

2021：: COL Group entered the short drama (micro-drama) market.

2022：: Micro dramas began gaining popularity as a novel concept.

March 2025：: At an industry conference, Chen Ruiqing, chairman of Dianzhong Tech Co. Ltd., estimated there were 2 billion potential overseas users and stated that the 2024 market size for micro-dramas surpassed $1.2 billion.

April 2025：: COL Group launched the FlareFlow platform.

First half of 2025：: COL Group, iReader, and Kunlun Tech all reported increased revenue but larger losses, mainly due to higher overseas content and promotion costs.

2025：: FlareFlow reached nearly 10 million downloads and hosted 1,700 titles, employing over 350 staff members.

2025：: Crazy Maple Studio swung to a loss, with ReelShort shifting to locally produced content overseas.

2025：: iReader's overseas app iDrama built a library of thousands of short dramas, but dual-track expansion at home and abroad impacted profitability.