As JioStar storms micro-dramas, ShareChat and smaller platforms face a fight for survival

JioStar’s planned entry into the micro-drama segment is expected to lend institutional legitimacy to one of India’s fastest-growing digital content formats, accelerating advertiser interest while triggering a shakeout among smaller, undifferentiated players. Industry executives say the move could shift micro-dramas from an experimental, niche category to a more structured, outcome-driven market, where scale, cultural relevance and monetisation efficiency—rather than just content volume—determine long-term winners.

JioHotstar is all set to enter the fast-growing micro-drama segment, with plans to roll out short-format narrative content on its app by early 2026, according to top sources familiar with the developments. The move is aimed at tapping India’s rapidly expanding appetite for snackable, episodic storytelling and leveraging JioHotstar’s massive existing user base to scale the format quickly.

JioStar’s entry is being closely watched by both established digital platforms and smaller, format-native players. While large conglomerates bring scale, marketing muscle and advertiser confidence, several executives argue that micro-dramas demand a fundamentally different operating model from traditional OTT.

“Big players entering micro-dramas clearly validate the format, but scale alone does not guarantee success,” said Naveen Kadyan, head of product at Zupee Studio. “This space is driven by cultural understanding, rapid experimentation and close collaboration with creators. Companies that are built ground-up for short-form storytelling have an inherent advantage, as opposed to adapting long-form thinking to a new format.”

Kadyan added that the entry of large platforms is less about crowding out smaller players and more about differentiation. “What we are likely to see is a natural sorting between serious content companies and pure distribution plays. For brands, impact will increasingly be defined not just by reach, but by relevance and depth of audience engagement,” he said.

According to Redseer Strategy Consultants, the segment reached an annual run rate of $260 million as of November 2025, nearly doubling within two months from September levels.

From an advertising perspective, micro-dramas are beginning to move beyond pilot budgets. Neha Markanda, chief business officer at ShareChat and Moj, said brand spending typically follows a predictable curve in new formats. “Initially, budgets are driven by experimentation and niche engagement. Meaningful allocation accelerates only once scale, consistency and brand recall are established,” she said.

According to Markanda, advertisers are responding positively to the format’s consumption patterns. “Once brands observe consistent daily usage, high completion rates and repeat exposure within serialized narratives, spending quickly shifts from test-and-learn to more structured, always-on investments. We are seeing a 15–20% increase in view-through rates for ads embedded within micro-dramas, as audiences remain hooked to the storyline,” she said.

She added that advertiser trust is becoming increasingly platform-agnostic. “Today, credibility is driven by outcomes—attention, recall and behavioural impact. If a platform can demonstrate predictable reach, cultural relevance and measurable performance, trust follows, regardless of whether the content sits on OTT, social media or emerging short-form scripted formats,” Markanda said.

Both Filter and validation

Others believe JioStar’s entry will act as both a validation and a filter for the category. GV Krishnamurthy, principal at AiNxtGen, said smaller players may not be able to match the spending power of a conglomerate, but they can compete on efficiency. “The real contest is not about who has the biggest show, but who owns the most efficient last mile of attention and transaction in Bharat,” he said.

Krishnamurthy noted that format-native platforms can still win through lightweight apps, offline caching, deep regional penetration and UPI-native micro-monetisation models such as tips, gifts and shoppable content. “JioStar’s entry brings legitimacy with advertisers and agencies, but it will also squeeze out weaker, undifferentiated plays. Platforms with clear positioning, proprietary data or differentiated monetisation will benefit, while generic inventory resellers will struggle,” he said.

According to Chandrashekar Mantha, Partner and Media & Entertainment industry leader, Deloitte India, micro-drama industry is currently estimated to generate annual recurring revenues of approximately USD 125–130 million, according to industry sources, and is projected to grow at a high double-digit CAGR over the coming years.

Mantha said, "The ongoing shift of audiences toward OTT platforms and social media is reshaping advertising investments across the funnel. Short-form content is poised to thrive, supported by its versatility across genres and languages, as well as compelling storytelling and sequels that encourage repeat engagement and long-term viewer association. While long-form content continues to command higher affinity due to its production values, short-form formats are increasingly complementing it, buoyed by rising trends in both production sophistication and consumption intensity."

Shakeout not due to size

For advertisers, the emerging consensus is that budgets will increasingly be split by objectives rather than platform size alone. Abhishek Razdan, co-founder and CEO of Avtr Meta Labs, said large platforms like JioStar will attract brands seeking scale and safety, while format-native ecosystems will continue to appeal to marketers looking for deeper integration and experimentation. “JioStar’s entry expands the category rather than redirecting all budgets overnight,” he said.

According to experts, micro-dramas form part of India’s broader interactive media ecosystem, which includes social discovery platforms, audio streaming, devotional and astro-tech, and AI companions. Redseer estimates this overall market could reach $3.1–3.4 billion by FY2030, growing nearly seven-fold from FY25 levels.

Among all segments, micro-dramas are expected to be the fastest growing, with a projected CAGR of 50–75% between FY25 and FY30. Adoption is currently concentrated in metro and Tier-1 markets, with 65–70% of viewers being male, primarily in the 25–45 age group — a demographic that advertisers find particularly attractive.

Pratap Jain, founder and CEO of ChanaJor and director and CEO of V Hunt Digital Media, calling the move a validation rather than a threat. “Micro-dramas do not attract this level of attention unless the format has proven staying power. There will be a shakeout, but not purely because of size. It will come down to who understands the grammar of micro-dramas versus who simply repackages long-form content into shorter episodes,” he said.

As JioHotstar prepares its micro-drama rollout, the broader market appears poised for its next phase of growth—one where scale, storytelling and technology will determine who captures India’s increasingly fragmented but highly engaged short-form audience.