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Key Insights
High user maturity and stable payment behaviour, with average short-drama revenue per download at around USD 2.3 — above the global average
Against the backdrop of a global short drama boom, Europe — often viewed as a “slow-burn” market — demonstrates unique long-term value thanks to its ecosystem advantages and monetisation potential. Local users are accustomed to paying for premium content, display high media literacy and relatively focused preferences, and have higher expectations for pacing, production quality and narrative structure, shaping a well-established pattern of consumer behaviour.
Steady growth and clear policy mechanisms make Europe a strong market for long-term investment
Although the European short drama market offers no immediate windfall opportunities, its mature regulatory policies and transparent operating mechanisms provide a stable and executable environment. For platforms with localisation capabilities and efficient content iteration cycles, Europe is ideal for long-term investment, enabling a gradual build-out of local operational and the establishment of sustainable competitive advantages.
Efficient production and global reach position Europe as a key hub for English-language short drama
With relatively manageable production costs and teams experienced in working with international platforms, Europe boasts mature execution systems that deliver reliable quality, offering better overall cost performance than North America. Its diverse filming locations and well-developed industrial infrastructure enhance content sophistication, helping short dramas move beyond the “low-quality” stereotype. Moreover, producing primarily in English gives European works natural adaptability for global distribution — “Made in Europe, Broadcast Worldwide”— thereby improving content reusability and distribution efficiency.
A replicable path from compliance to monetisation as short-form video advertising nears 50% of all video ad spend
Europe’s regulatory framework is clearly defined. Although compliance can be costly at the outset, once platforms establish standardised operational capabilities, they can build strong defensibility and reap long-term benefits. Monetisation models such as rewarded ads and brand placements are maturing locally, shaping a stable and predictable revenue path for localised operations.
Why do platforms continue to bet on Europe’s short drama market despite the lack of traffic dividends?
While the global short drama market is experiencing explosive growth, Europe’s trajectory remains relatively subdued. User growth, download volumes, and revenue increases all lag behind markets such as North America and Southeast Asia. Yet platforms like TikTok and ReelShort continue to invest heavily in the European short drama sector. What drives these industry leaders to continue investing in a market without apparent traffic dividends? What long-term value do they see? And amid Europe’s dense regulatory landscape and cultural diversity, how should overseas short drama platforms position themselves for sustainable growth?
Market environment: unlocking opportunities hidden in Europe’s steady-growth landscape
At first glance, Europe’s short drama market — with its limited user base, moderate growth rate, and strict regulations — may appear to lack the appeal of rapid traffic gains and quick monetisation. However, precisely because of these characteristics, it is not a speed-driven, explosive market, but rather a structural market that tests content quality, compliance capability, and operational depth.
Platforms continue to invest in Europe primarily because of the region’s high user maturity, steady monetisation potential, and clearly defined regulatory framework. Rather than calling it a “non-dividend market”, it may be more accurate to describe Europe as an undervalued pocket of long-term opportunity.
Slow growth ≠ no opportunity: Europe as a structurally “slow-burning” market
Compared to other markets that have experienced explosive growth, Europe’s short drama sector is characterised by steady, albeit delayed, user adoption and gradual platform penetration. According to Diandian Data, short drama downloads in Europe rose from 3.78 million in Q1 2024 to 13.22 million in Q1 2025, showing a stepwise upward trend that reflects phased breakthroughs in user education, content production, and marketing strategies.
European short drama app downloads, Q1 2024–Q1 2025
Source: Diandian Data, iResearch
European short drama app revenue, Q1 2024–Q1 2025
Source: Diandian Data, iResearch
From a revenue perspective, European short drama apps generated approximately $52.65 million in total revenue in 2024. There was a notable surge between Q2 and Q3 2024, after which growth stabilised yet remained on an upward trajectory — indicating increased user retention and sustained willingness to pay.
Furthermore, Europe’s RPD (Revenue per Download) exceeds the global average, showing that users demonstrate both strong payment capacity and a willingness to engage with premium content. This suggests that even with a relatively limited user base, platforms can still achieve revenue growth through refined operations.
RPD comparison across short drama markets by region, 2024
Source: Diandian Data
The gradual emergence of Europe’s short drama market does not stem from a lack of demand but rather from its highly mature user base. For years, local audiences have been deeply influenced by mainstream platforms such as Netflix, Disney+, HBO Max, and YouTube, which have elevated expectations for content quality, pacing, and overall viewing experience. As a result, low-quality short dramas find it difficult to attract attention quickly. At the same time, Europe presents a complex, multilingual, and multicultural market where content preferences are strongly localised, making it difficult for platforms to scale rapidly with a one-size-fits-all strategy. Instead, success requires regional segmentation, phased penetration, and localised operations.
Therefore, while Europe may not be a traffic-dividend-driven market, it possesses structural advantages such as high ARPU, strong user retention, and robust conversion rates. In such a market, in-depth operations take precedence over rapid expansion, and monetisation depends more on content quality and building relationships with users than on short-term traffic spikes. For platforms with strong content and operational capabilities, this is precisely where long-term value lies.
