Recall the short-lived streaming service Quibi, which launched with high expectations but ultimately failed in 2020, becoming synonymous with ill-fated entertainment ventures.
Now, Lloyd Braun, a prominent Hollywood executive with leadership experience at ABC Entertainment, Yahoo Media Group, and WME, is revisiting the concept of a short-form content studio and app with a fresh approach.
Braun believes that while Quibi had significant flaws in execution and timing, the core idea of delivering brief, serialized content for mobile devices remains compelling—especially when enhanced by artificial intelligence.
On Wednesday, Braun and his partners introduced MicroCo, which aims to pioneer the micro drama format in the U.S., a genre that originated in China and has since become a multibillion-dollar industry there.
Micro dramas are vertically filmed, serialized soap operas designed for phone viewing, often described as video romance novels tailored for the TikTok generation. Titles on Chinese platforms such as ReelShort include provocative names like “Selling My Virginity to the Mafia King” and “Pregnant by My Ex’s Professor Dad.”
Production costs for these shows are minimal by Hollywood standards, with entire seasons sometimes made for as little as $15,000. Episodes typically last between one and three minutes, with seasons ranging from 30 to 150 episodes.
These Chinese micro drama platforms have recently gained popularity in the United States, with millions of downloads reported. Industry analysts project that the global market for micro dramas outside China could reach $10 billion by 2027.
Braun highlighted the opportunity, describing it as a rare untapped segment in entertainment with no clear leader in the U.S. market.
MicroCo is backed by Cineverse, a Los Angeles-based tech-focused entertainment firm, and Banyan Ventures, an investment and media incubator co-led by Braun and other industry veterans. Financial details of the investment have not been disclosed.
The startup plans to operate on a freemium model, offering initial episodes free while charging for credits or subscription plans to unlock full seasons. Advertising may also be integrated into the app, which is slated for release early next year.
Quibi’s downfall was partly due to its high content costs, reportedly spending between $100,000 and $125,000 per minute on shows averaging up to 10 minutes per episode, releasing about three hours of new content daily. Despite heavy investment, subscription numbers were disappointing, resulting in a loss of approximately $1.4 billion.
MicroCo aims to avoid these pitfalls by leveraging AI technologies to reduce production expenses significantly. Braun emphasized that modern technology enables quality storytelling at substantially lower costs.
The company also plans to expand the micro drama format into other genres, including animation. Traditional TV animation costs range from $15,000 to $60,000 per minute, but AI-assisted processes developed by startups backed by Banyan Ventures can reduce costs to as low as $1,500 per minute.
While AI remains a controversial topic in Hollywood, particularly among creative professionals concerned about job security, MicroCo intends to use the technology as a complement to human creativity rather than a replacement.
Jana Winograde, MicroCo’s CEO and former president of Showtime, stated that while technology will play a crucial role, human input remains essential for quality storytelling and scalability.
Winograde explained that the goal is to enhance the overall quality of micro dramas without sacrificing the rapid, cliffhanger-driven storytelling that has made the format popular. Each episode is designed to establish dramatic stakes within three seconds and deliver a compelling hook by 23 seconds.
“We want quality storytelling, but we are not aiming to produce premium television,” Winograde said, emphasizing the importance of maintaining the genre’s characteristic style and appeal.
Susan Rovner, former chairwoman of entertainment content at NBCUniversal Television and Streaming, will join MicroCo as chief creative officer in October. Rovner brings extensive experience from her 22 years at Warner Bros. Television, where she helped develop acclaimed shows like “Ted Lasso,” “Gossip Girl,” and “The Flash.”
Cineverse, holding a 50 percent stake in MicroCo, is positioned as a strategic partner with expertise in streaming and AI development. The company’s engineering team, primarily based in India, is building the MicroCo app.
Erick Opeka, Cineverse’s president and chief strategy officer, expressed confidence in delivering a polished micro drama experience that aligns with American viewers’ entertainment expectations.
Cineverse also owns a vast library of approximately 71,000 media assets, including podcasts, films, and TV series, some of which may be adapted for MicroCo’s platform. The company gained notable recognition last year by turning the low-budget horror film “Terrifier 3” into a box office success, earning $90 million worldwide on less than $1 million in marketing.
When asked why established studios have yet to embrace micro dramas despite their commercial potential, Chris McGurk, Cineverse’s CEO, suggested that ongoing industry upheaval has left major studios focused on damage control rather than innovation.
He added that fresh ideas requiring innovative thinking, such as those brought by Winograde, Braun, and Rovner, are more likely to flourish in new ventures like MicroCo.
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