Vertical Media on the Rise

Vertical media is a rapidly growing sector in the entertainment industry, with a projected revenue of $150 billion in 2026. According to a study by Owl & Co., a market research and consulting firm, the sector is expected to generate 42% more revenue than in 2025, with the majority of it coming from advertising revenue. The study also found that platforms such as TikTok, Instagram, YouTube, and Facebook are expected to generate 94% of the total revenue outside of China.

The Dominant Players

The study identified Meta, ByteDance, and YouTube as the dominant players in the vertical media sector, with Meta generating 27% of its total revenue from vertical media, YouTube generating 22% of its total revenue from vertical media, and ByteDance generating 72% of its total revenue from vertical media. These companies are expected to continue to lead the sector, with Disney recently announcing a partnership with TikTok to allow authorized use of Disney IP for fan-made content.

The Rise of Microdramas

Microdramas, a type of short-form serial, are becoming increasingly popular in the vertical media sector. According to Owl & Co., the pace of new series introduction grew 25% in the second quarter of this year, but total watch time of new series declined 4%. This trend suggests that the sector is becoming increasingly crowded, with creators and producers competing for attention and viewers.

Genres and Trends

Romance stories and drama thrillers are still the dominant genres for short-form serials and recurring series, but that mix is changing. Shows and stars who wouldn’t be out of place on Food Network or HGTV are starting to populate with vertical shows. Programs devoted to business, finance, and news accounted for 12% of vertical media views outside of China, per Owl & Co. research.

The Future of Vertical Media

The future of vertical media is uncertain, with many questions remaining about the sector’s growth and sustainability. However, one thing is clear: the sector is here to stay, and companies like Meta, ByteDance, and YouTube will continue to lead the way. As the sector continues to evolve, it will be interesting to see how creators and producers adapt to the changing landscape and find new ways to engage with audiences.

Challenges and Opportunities

The vertical media sector is facing several challenges, including high subscriber acquisition costs and a crowded content field. However, these challenges also present opportunities for innovation and growth. As companies like Disney and TikTok continue to invest in the sector, we can expect to see new and exciting developments in the world of vertical media.