Hollywood’s Inevitable Pivot to Vertical Video Is Here

Why It Matters

Vertical video is becoming a dominant, high‑margin channel for audience capture, forcing studios and advertisers to re‑engineer content and monetization strategies for mobile‑first consumption.

Key Takeaways

• Vertical video now a $100B industry, rivaling Netflix revenue.
• Major studios and platforms are launching dedicated vertical formats.
• Vertical video is a distinct audiovisual language with unique talent and economics.
• Low‑budget original vertical content is proving profitable, especially on Meta.
• Advertisers earn five times more per viewing hour on vertical platforms.

Summary

The Town episode spotlights Hollywood’s rapid shift toward vertical video, a format designed for phone‑first consumption. Over the past month, Netflix, Disney, Paramount, Meta, Google, Amazon, TikTok and NBCU have all announced or rolled out vertical‑only products, signaling a coordinated industry pivot.

Analyst Hernan Lopez estimates the vertical video market generated roughly $100 billion in revenue last year—about twice Netflix’s earnings—and notes that Meta’s Reels alone reached a $50 billion run‑rate. The growth stems from higher mobile engagement: vertical‑first apps like TikTok and Instagram are gaining watch time while traditional streaming services lose mobile minutes.

Lopez frames vertical video as a third audiovisual language, distinct from film and television, with its own talent pipelines, aesthetics, and business models. He cites successful vertical‑only ventures such as TikTok’s original micro‑series, the live‑shopping platform Whatnot, and Peacock’s vertical NBA broadcasts, illustrating how both user‑generated and professionally produced content thrive in this space.

The emergence of vertical video reshapes content strategy, advertising pricing and subscription models. Studios must allocate modest budgets to vertical originals, while advertisers can command rates five times higher than on traditional streaming. Companies that master this format will capture more daily user engagement and diversify revenue streams beyond legacy screens.

Original Description

Matt is joined by Hernan Lopez, founder of Owl and Co. and Wondery, to talk about the rise of vertical video, how it ballooned to a $100B/year business, the staggering success of Reels, and which companies in Hollywood are best suited to benefit the most from this trend (00:00). Matt finishes the show with a prediction about next season's cast of 'Saturday Night Live' (26:50).

Host: Matt Belloni

Guest: Hernan Lopez

Producers: Craig Horlbeck and Matt Pevic

Theme Song: Devon Renaldo

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For more information visit Hulu.com/FYC