Vertical Media on Track to Generate $150 Billion in 2026 as the Booming Sector Fights Crowded Content Field and High Subscriber Acquisition Costs

There’s no doubt that 2026 will go down as a milestone year for the growth in popularity of vertical media content in the U.S. The sector is booming but still incredibly diffuse. That will change as microdramas and other formats proliferate and generate more advertising, subscription and in-app purchase revenue.

Those are among the conclusions drawn in a study of the vertical media sector’s growth during the first half of 2026 by Owl & Co., a market research and consulting firm that has zeroed in on microdramas and such as the next big content opportunity for new and traditional outfits. Hernan Lopez, founder and CEO of Owl & Co., is author of “Vertical Economy Report 1H26: Mapping Consumption, Creation, Value Capture Across a $150B Audiovisual Language.”

For 2026, vertical media is projected to generate $150 billion in revenue in global markets outside of China, where the microdrama biz is well established. That’s projected to be a 42% gain over 2025. Most of that $150 billion is expected to come from advertising revenue ($131 billion) via platforms such as TikTok, Instagram, YouTube and Facebook. The numbers are approaching the volume of revenue generated in the U.S. by subscription streaming platforms. In other words, it’s not insignificant. That’s why Disney unveiled with fanfare a cutting-edge partnership with TikTok to allow authorized use of Disney IP for fan-made content.