This Week in Vertical Issue 2026-w27
This Week in Vertical — 29 June – 5 July 2026
17 reports on the vertical-drama business dated 29 June – 5 July 2026, each labelled with the basis it rests on and linked to its sources.
The lead
- Higgsfield AI in talks for $300-500m at a $5bn pre-money valuation
The round is explicitly not closed. The Information and TechFundingNews name DST Global among the investors in the discussions.
- Cineverse steps back from aTwist to a passive minority stake
On its Q4 FY26 call the CFO said the company would rather sell picks and shovels than join an arms race in which Asian platforms spend about $1m a day on marketing.
- Evoken, the LiblibAI parent, raises about $300m at more than $2bn
Yicai Global reported the Series B+ on 18 June 2026. The money goes to the AI video tool layer rather than to a consumer microdrama app.
More this week
Capital
- Yash Raj Films takes a strategic stake in Rusk Media
Variety reported the investment in the Indian vertical-entertainment company on 29 June 2026. No deal value or stake size was disclosed.
- Chinese capital moves to the AI production-tool layer
AniShort and CreativeFitting both raised funding in rounds dated 9 to 12 June 2026, according to PEdaily.
Market data
- Adjust and Sensor Tower publish a joint short-drama app report
The Short Drama Apps Report 2026, dated 23 June, is reported to show ReelShort ahead of Netflix on daily time spent and short-drama installs in Latin America up 913%.
Platforms
- VeYou brings a premium vertical platform to Europe with S32 backing
The producer Tommy Harper launched the service in April. It is live in the US, UK, Europe, Latin America and MENA, with S32 as lead investor.
- TikTok launches Mini Dramas for brands, with a Growth Max ad tool
From 1 July, advertisers can publish episodic mini-drama series directly on TikTok. Maybelline, Crocs and Starbucks are named as testing it.
- Microhouse Films launches 7 July with Lifetime's first microdrama
The Taye Diggs-linked app opens with Tides of Temptation and six titles, with five further Lifetime projects planned. Media Partners Asia put DramaBox and ReelShort's combined annualised revenue at about $1.5bn.
- Pocket FM shuts down Pocket TV ahead of its IPO
Business Today reported the closure of the company's vertical video service on 28 June 2026.
Regulation news
- MedienInvestVG reaches the Bundesrat floor with a vote set for 10 July
Drucksache 324/26 is on the agenda of the chamber's 1067th sitting on 10 July, the last before the summer break. The culture committee took it on 22 June.
- China's NRTA drafts administrative measures for microdrama
The 24 June draft defines episodes of under 20 minutes, requires pre-release approval and script and title control, and bars wealth-flaunting content. Comments close 23 July.
- EU publishes the final Article 50 code on labelling AI-generated content
The Commission's Code of Practice on Transparency of AI-Generated Content was published on 10 June 2026.
- Legal opinion holds the German streaming levy plans unconstitutional
A constitutional opinion by Di Fabio, reported on 26 June 2026, argues that the investment obligation planned in the Medieninvestitionsgesetz breaches the constitution.
Germany & DACH
- German trade podcast questions the microdrama growth story
mikrodrama.de's write-up of DWDL's Industry live recording at the Creators Conference in Munich reports doubts about the young-audience assumption and producer economics.
- RTLZWEI plans a vertical spin-off of Berlin – Tag & Nacht
A press release of 2 July describes a mobile and social-first vertical version of the soap for TikTok and the group's own platforms, including RTL+. No start date is given.
- ARD's vertical series Between The Beats goes live on TikTok
The public broadcaster's vertical drama launched on TikTok on 25 June 2026, reported by Quotenmeter.
Regulation tracker
China, NRTA filing review tiers and the AI micro short drama classification notice
- 1 July 2026The AI classification notice takes effect.