Mumbai: India's fast-growing micro-drama industry is beginning to evolve beyond a volume-driven content play, with established film production houses entering the segment as platforms increasingly use short-form storytelling to test intellectual property (IP) and build branded content opportunities, industry executives and entertainment experts told ET.

Recent reports suggest that major production houses such as Yash Raj Films, which plans to invest Rs. 150 crore in micro-drama content, and Red Chillies Entertainment are diversifying into the space. At least 15 apps currently offer micro-drama content in India.

"Like in the West, India's micro-drama space is likely to emerge as a breeding ground for testing the scalability of an IP. Big players such as Yash Raj Films and Red Chillies Entertainment are likely to test the efficacy of their ideas with audiences on micro-drama apps. Based on audience response, they can then decide whether to scale an IP into a web series or a theatrical feature film," said Azim Lalani, co-founder and chief business officer at Bullet, a micro-drama content app.

Artificial intelligence is emerging as one of the tools for testing IPs in the micro-drama space.

In the West, Holywater, a technology entertainment company, operates a four-app micro-drama ecosystem comprising My Drama, FreeBits, My Muse and My Passion.

According to industry executives, the company first tests an IP on My Muse, its AI-based platform. If the content receives a favourable response, it is adapted into a live-action format and released on another subscription-based app. Content that performs well is then scaled into a larger-format web series or feature film, helping the company de-risk investments.

Industry experts expect a similar model to emerge in India.

Executives said the entry of large production houses into the segment could also open new doors for talent.

"When big players such as Yash Raj Films or Red Chillies Entertainment enter the micro-drama space, they increase its attractiveness. Mainstream talent, which has so far been somewhat reluctant to work in the segment, will begin to take it more seriously," said Kunj Sanghvi, SVP, Business, Kuku TV, a leading micro-drama platform in India.

Branded content is another factor making the segment increasingly attractive, film marketing experts said.

"Big players will premiumise offerings in the micro-drama space. At present, mostly local brands are integrated into content because viewers are largely based in tier-2 and tier-3 markets. But with the entry of players such as Yash Raj Films or Red Chillies Entertainment, brands with a national presence will begin to consider the space more seriously," said Neeraj Joshi, film marketing consultant.

Branded entertainment experts also believe the economics of micro-drama content work in favour of production houses.

"The micro-drama space has relatively low entry barriers. It requires less time and capital compared with theatrical feature films. For large production houses, creating micro-drama content with integrated brands can become a meaningful source of revenue. Today, there is significant unpredictability around box-office performance, while the time and investment needed to produce a feature film are substantially higher," said Navin Shah, joint managing director at EMC Solutions Worldwide, a branded entertainment company.