Micro dramas are changing brand advertising
What's the story
Pocket Aces, a digital entertainment company owned by music label Saregama, is witnessing a shift in advertisers' preferences. Brands are now investing more in micro dramas than traditional short-form videos. The company has seen brands paying up to 50 times more for campaigns that blend storytelling with the publisher's distribution, as per a new report. This trend is being viewed as one of the first sustainable business models in this format.
Quote
'They're also paying for the media value'
Aditi Shrivastava, co-founder of Pocket Aces, told MoneyControl, "Brand spending on micro dramas is significantly higher because brands aren't just paying us to produce the content. They're also paying for the media value because we're publishing it on our own Instagram channels." "The distribution itself carries value." The company has created branded micro dramas for brands like Castrol, Cadbury, and I-pill.
Market trend
Companies backed by larger media groups have advantage
Shrivastava noted that while consumer monetization is still developing, the demand from advertisers is increasing rapidly. She said, "For standalone micro drama apps, monetisation is still evolving. Many of these companies are still loss-making because they're spending heavily on customer acquisition and marketing." However, companies backed by larger media groups have a different economic model as micro dramas don't need to be profitable on their own.
Strategic move
Pocket Aces's strategy to produce editorial micro dramas
Pocket Aces has taken advantage of its position by producing editorial micro dramas on Instagram and developing projects for television and streaming platforms. The company is also one of the early publishers in Instagram's beta rollout of its new Series feature, along with its brands FilterCopy and Dice Media. Shrivastava said, "Brands want to take advantage of products that platforms themselves are promoting."
Corporate synergy
Saregama's acquisition of Pocket Aces
Since its acquisition by Saregama, Pocket Aces has become more integrated into the music and creator ecosystem. Saregama first acquired a 51.8% stake in Pocket Aces in November 2023 and increased its holding to around 90.37% by March 2025 after purchasing an additional 36.63% stake for ₹127.47 crore. During Saregama's fourth-quarter FY26 earnings call, managing director Vikram Mehra said Pocket Aces had reached breakeven and started contributing to the group's profitability while creating synergies across music and live events.
Content strategy
Music's role in content performance
Shrivastava also emphasized how music has become a vital part of Pocket Aces's content strategy. She said, "When we use new music, it helps the content perform better. When we use older songs, the content helps revive those tracks for newer audiences." "Otherwise, how do legends like Kishore Kumar or Lata Mangeshkar continue connecting with Gen Z and Gen Alpha? Contemporary content gives classic music a new life."
New initiative
It's focusing on creator-led music creation
Pocket Aces is now extending its strategy to creator-led music. One of its recent successes was creator Danny Pandit's viral Instagram Reel, which was turned into a full-fledged music video under Saregama Marathi. The company is now preparing original music videos featuring creators such as BeYouNick (Nikunj Lotia).