A new report from Media Partners Asia forecasts significant financial growth for the microdrama platform ReelShort as marketing costs decline and revenue streams diversify.

Microdrama platform ReelShort is on track to generate $1.05 billion in revenue in 2026, according to a report by Singapore-based research firm Media Partners Asia (MPA). The platform is expected to achieve its first meaningful profit at scale that year, with projections of $63 million in EBITDA and $40 million in net profit. This growth follows a period of rapid expansion, with revenue climbing from $97 million in 2023 to an estimated $785 million in 2025.

Drivers of Profitability

MPA attributes ReelShort’s improving margins to a reduction in marketing and user acquisition costs, which are expected to fall from over 50% of revenue in 2025 to under 45% by 2028. This shift is driven by the success of hit franchises that attract audiences without paid support, as well as new telco partnerships and a move toward direct billing on the platform's web store. Advertising is also becoming a larger part of the business, expected to reach 15% of revenue by 2028, which provides higher margins due to the absence of app-store commissions.

Global Expansion and Market Dynamics

While North America currently accounts for 59% of ReelShort's revenue, the company is expanding its footprint in Asia. A partnership with Thailand’s AIS has already increased engagement, and further deals are planned for Indonesia, the Philippines, Japan, and Korea. Despite having a large user base in Latin America and Asia Pacific, these regions currently generate less than 20% of the platform's revenue. MPA identifies closing this monetization gap as a primary source of potential upside for the company.