Audio storytelling platform Pocket FM has quietly shut down its microdrama vertical Pocket TV, despite the booming multi-billion-dollar market for short-form content. According to a company spokesperson, Pocket TV was merely a beta project that ran for just four months before production was halted in March. The vertical, which launched in March last year, was discontinued because the company did not want to invest in it, not because it wasn't making money, as reported by The Economic Times. All employees assigned to the vertical have been reassigned to other internal projects, with no layoffs occurring as the company shifts focus to its core audio and AI content. The Pocket TV shutdown marks a strategic shift as the company exits the fast-growing microdrama segment to concentrate on its core audio streaming business.
The decision comes at a time when venture capital firms are aggressively investing in the micro-drama sector, with the market crossing $300 million in 2025 and estimated to reach $4.5 billion by 2030, according to gaming and interactive media VC firm Lumikai. Major competitors are doubling down on the space, with Kuku FM confidentially filing for an IPO to raise between ₹2,500 crore and ₹3,500 crore, potentially valuing the company at nearly ₹15,000 crore. However, Pocket FM spokesperson emphasized that "We are not here fighting for space with people; that's not the point. Nobody is looking at how the audio business is booming." The company believes there's much larger potential for audio than what exists currently, with the Pocket TV shutdown reflecting this strategic focus on audio-first entertainment.
In April, Pocket FM CEO Rohan Nayak announced the company had crossed $400 million in annual recurring revenue with an EBITDA margin of about 5% by March 2026. Much of this growth has been driven by AI integration, with nearly 300 people now working on creating content using AI tools, according to an employee. The company hired Vasu Sharma as head of AI in January, previously a scientist at Meta's Facebook AI Research department. Pocket FM has consistently used generative AI tools for content creation and recently launched audiobooks, which are performing surprisingly well despite being a beta project. The company remains backed by leading investors including Sequoia Capital, Accel, and Tiger Global, with the Pocket TV shutdown signaling a decision to prioritize profitability and long-term growth over expanding into every emerging content category.
The move directly counters the industry rush into micro-drama, with major players including Amazon, Zee Entertainment Enterprises Ltd., and Jio Hotstar launching their own platforms. Pocket FM's rivals include Kuku FM, backed by Google, 3one4 Capital, and Krafton India, and other startups like Mohalla Tech's Moj and Eloelo's Story TV. The Pocket TV shutdown comes as Kuku FM prepares for its IPO, with the company recently filing confidential draft papers for an offering expected to raise between ₹2,500 crore and ₹3,500 crore. When asked about future AI video products, the spokesperson said "Maybe. But right now, we're not in a position to announce anything." The company recently launched audiobooks and will evaluate scaling based on performance, though it remains a beta project.
