Hollywood’s Inevitable Pivot to Vertical Video Is Here

Summary of Hollywood’s Inevitable Pivot to Vertical Video Is Here

by The Ringer

35m•May 20, 2026
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Overview of Hollywood’s Inevitable Pivot to Vertical Video Is Here

This episode of The Town focuses on the rapid rise of vertical video as a major new media category and why Hollywood, streamers, and social platforms are racing to compete for mobile attention. Matt Belloni speaks with Hernan Lopez about how vertical video is evolving from short social clips into a broader ecosystem that includes microdramas, vertical news, sports, comedy, reality, and live shopping. They argue that this is not just a format shift, but a distinct “audiovisual language” with its own economics, audience behavior, and creative rules.

Vertical Video Is Bigger Than People Think

Hernan Lopez argues that vertical video should be understood as a separate category from traditional TV and film, not just a social-media gimmick.

Core idea

  • Vertical video is a standalone audiovisual language, similar to how television became distinct from film.
  • It includes:
    • TikTok-style clips
    • Instagram Reels
    • YouTube Shorts
    • Microdramas
    • Vertical news, sports, comedy, and reality
    • Vertical live shopping

Why it matters

  • The category is already enormous:
    • Roughly $100 billion in annual revenue globally by the show’s estimates
    • About half of that comes from Meta/Reels
  • Lopez’s point: the market is already large enough that Hollywood can’t treat it as a fringe experiment.

Why Vertical Works

The main reason vertical video is winning is simple: it matches how people naturally hold and use their phones.

Key observations

  • People increasingly consume video on their phones in a vertical orientation by default.
  • Traditional streamers spent years losing mobile time even as they grew on TVs.
  • Platforms that leaned into vertical formats gained engagement and frequency of use.

The behavioral shift

  • Vertical feels native and easier.
  • It reduces friction compared with turning the phone sideways.
  • The format is now being shaped into a full professional content layer, not just user-generated clips.

Business Models: UGC First, Originals Next

The conversation emphasizes that vertical video started with cheap, user-generated content, but is now moving into professional production.

What’s working now

  • Meta and YouTube dominate with massive volume and ad infrastructure.
  • TikTok is moving into original programming.
  • New vertical-first companies, especially in China, have already proven that scripted vertical content can generate real revenue.

Microdramas and scripted vertical content

  • The successful formula often looks like:
    • short episodes
    • heavy cliffhangers
    • freemium or ad-supported monetization
  • Lopez says these are often better thought of as long-form stories broken into many short beats, not merely “tiny shows.”

Cost structure

  • Hollywood should not repeat the mistake of Quibi by overspending.
  • The vertical world will likely support multiple budget tiers:
    • very low-cost creator content
    • mid-budget professional shows
    • higher-end studio experiments

Why Quibi and Similar Efforts Failed

The episode revisits earlier attempts at mobile-first video, especially Quibi and Go90.

Lessons from past failures

  • They were too expensive relative to the market.
  • They tried to force premium TV thinking into a new medium.
  • They launched before the consumer habit and platform ecosystem were ready.
  • Quibi also launched as TikTok was exploding in the U.S., which shifted attention elsewhere.

Lopez’s takeaway

  • The failure was not the idea of vertical video itself.
  • The failure was the business model and timing.

Who’s Investing Now

A major theme is that the industry is no longer asking whether vertical video exists, but which companies will own it.

Platforms moving in

  • Netflix
  • Disney
  • Amazon
  • Paramount
  • NBCUniversal / Peacock
  • TikTok
  • Meta
  • YouTube
  • Fox, through investment in vertical-media company Hollywater / MyDrama

Examples mentioned

  • TikTok is already commissioning original microseries, including one from Issa Rae’s company.
  • Peacock is testing vertical live NBA broadcasts.
  • The New York Times found traction with a vertically produced “Watch” tab.
  • WhatNot is cited as a vertical live-shopping success story.

Monetization: The Real Prize Is Time Spent

The episode argues that the key competition in media is no longer just for subscribers or prestige, but for attention and frequency.

Why vertical is attractive to platforms

  • More time spent on mobile
  • More days per month in the app
  • More frequent engagement throughout the day

Ad economics

  • Meta monetizes viewing hours at a much higher rate than Netflix, according to the episode.
  • Why?
    • More ad inventory per hour
    • Better targeting
    • Better advertiser tooling
    • Ads that feel less interruptive
  • YouTube also has strong monetization because of its creator-ad-revenue system and music licensing structure.

Implication

  • Media companies are increasingly building strategies around “time spent” rather than just hits or shows.
  • That pushes them toward vertical, podcasts, and low-friction mobile formats.

What This Means for Hollywood Creators

Belloni asks the practical question: should producers and talent rush into vertical video now?

Lopez’s answer

  • Yes, but with caution.
  • It’s early enough that there are still major “firsts” available:
    • first vertical sitcom
    • first vertical reality format
    • first vertical mockumentary
    • first breakout vertical star
  • But it’s also risky to arrive too early and burn money before the market matures.

Bottom line for creators

  • Experimentation is worth it.
  • Creators and production companies should learn the language now.
  • The opportunity is real, but the winners will likely be those who understand the format’s native rules, not those who simply adapt TV into a phone screen.

Other Segment: SNL Cast Stability and Comedy’s Changed Economics

After the vertical-video interview, the episode shifts into a separate Call Sheet discussion about Saturday Night Live.

Main points

  • The hosts think this past season of SNL was solid overall.
  • They predict little cast turnover heading into the next season.
  • Some players they mention as possibly vulnerable:
    • Mikey Day
    • Jane Wickline
    • maybe a few pandemic-era additions
  • They think most of the new cast members will stay.

Bigger industry observation

  • Comedy careers have changed:
    • Fewer cast members leave SNL to become movie stars
    • The traditional theatrical comedy pipeline is weaker
    • Cast members now often stay longer because they can do other projects, stand-up, or social media alongside the show
  • They note that Lorne Michaels is more flexible than in the past, and cast members now have more outside opportunities than previous generations did.

Key Takeaways

  • Vertical video is becoming a major media category, not just a social trend.
  • It is powered by mobile-native behavior and huge ad economics.
  • Hollywood is beginning to invest in original vertical content, but must avoid Quibi-style overspending.
  • The most important metric in this new landscape is time spent, especially on mobile.
  • The episode also includes a separate note on SNL, predicting relatively stable cast turnover and highlighting how comedy careers have changed.