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The vertical media sector is poised to reach a significant milestone in 2026, with projections showing $150 billion in revenue globally outside of China—a 42 percent increase from the previous year. According to research from market analysis firm Owl & Co., this expansion reflects the rapidly growing popularity of vertical video content formats across digital platforms. The vast majority of this revenue, approximately $131 billion, is expected to come from advertising placements on major platforms including TikTok, Instagram, YouTube and Facebook.
The financial stakes in vertical media are becoming increasingly comparable to the U.S. subscription streaming industry, prompting major entertainment companies to develop strategies around the format. Walt Disney recently announced a partnership with TikTok to enable fan-created content using Disney intellectual property, signaling confidence in the sector’s long-term potential. However, competition remains intense as numerous startups compete for dominance in what is proving to be a fragmented marketplace with nearly 2,000 apps worldwide offering vertical content.
Despite rapid growth in content production, the sector faces challenges similar to those that plagued streaming platforms in previous years. While new series introductions grew 25 percent in the second quarter, total watch time for new releases actually declined by 4 percent, suggesting audience fatigue from oversaturation. Additionally, platforms are investing heavily in customer acquisition through advertising and marketing efforts to differentiate themselves in the crowded field, mimicking strategies employed by emerging social media companies seeking mainstream adoption.
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Originally reported by Variety →
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