Vertical Content Outgrows the Microdrama Moment as Asia’s Platforms Chase IP Franchises

Asia's vertical content sector is transitioning from short-form experimentation to developing intellectual property (IP) franchises, executives stated at the APOS conference on Thursday. During the "Building the Vertical Stack in Asia" session, industry leaders indicated that future growth will depend on subscriber acquisition and the creation of expansive IP.

This shift signifies a move towards longer-term value creation, with platforms aiming to build universes around successful content that can be extended across various media. The focus is on developing original stories and characters that resonate with audiences and can be leveraged into merchandise, spin-off series, and other revenue streams. This strategy mirrors trends seen in global entertainment markets, where IP franchises have proven to be highly lucrative.

Executives highlighted the increasing sophistication of content production and distribution in Asia, enabling the development of more complex narratives and character arcs. The goal is to cultivate a loyal fanbase that engages with the IP beyond the initial viewing experience. This approach is expected to drive deeper audience engagement and create more sustainable business models for vertical content platforms in the region.