The new frontier of video entertainment is the microdrama, where the plots are wildly contrived and quality absolutely does not matter.

A crash course in cutting-edge media. Microdramas are mobile-first episodic narratives filmed in vertical format, like a TikTok or Instagram Reels. They are essentially feature films shot for around $200,000 total and then divided into ~2-minute installments:

• Viewers can binge a few “episodes” before being prompted to sign up for an account at a specific microdrama app. In the US, the leading contenders are DramaBox, FlareFlow, and ReelShort.
• The business model echoes that of “freemium” mobile games. To advance through the narratives, viewers have to watch ads or make in-app purchases.

Hollywood invasion

The format took off in China—where it’s called “duanju”—and made $7 billion last year, surpassing the country’s domestic box office for the first time, according to Variety.

In 2024, US revenue for microdrama reached $819 million, which is projected to rise to $3.8 billion by 2030, according to Variety. That’s less than half of what the US box office brought in last year.

But Hollywood could use all the supplemental income it can get:

• Last week, the New York Times reported that none of the 25 dramas released in North America over the last three months has become a hit.
• Even well-reviewed, high-quality movies featuring renowned stars can’t get traction. Jennifer Lawrence’s Die My Love brought in $2.8 million in ticket sales during its debut weekend. After the Hunt, starring Julia Roberts, made $3.3 million after a month of playing in the US and Canada.

Microdramas eschew big names and heavy production values, and rely on workaday actors and writers. “It’s really saving a lot of people’s bacon,” Nick Ritacco told Variety. He’s starred in 40 microdramas.

But it may upend Tinseltown: Microdrama work is nonunion, and the production companies behind it proudly use AI to keep content flowing at rapid rates. The genre will probably never get its own Oscar category. Puck News called microdramas “the street drug of the content economy.”—HVL

‍ FAA lifts flight reduction emergency order today. The sound you hear may be the collective sigh of relief of US air travelers and/or many more flights taking off and landing. As of 6am ET, the government-shutdown-induced cancellations and delays at 40 major airports are consigned to the history books. The Federal Aviation Administration said that staffing levels have “stabilized” since the government reopened last Wednesday, meaning it is safe to proceed with regularly scheduled flights. Transportation Secretary Sean Duffy said focus will now return to hiring more air traffic controllers to improve conditions.

Former Federal Reserve Board Gov. Adriana Kugler allegedly broke trading rules, per report. Kugler, who joined the Federal Reserve in 2023 after being chosen by former President Biden, resigned in August without explanation. On Saturday, the US Office of Government Ethics released a report saying that Kugler broke rules that prohibit trading individual stocks and making transactions close to the time of Fed rate decision meetings. The report also said, “Certain trading activity was carried out by Dr. Kugler’s spouse, without Dr. Kugler’s knowledge and she affirms that her spouse did not intend to violate any rules or policies.”

Epstein files likely to get a House vote this week. After a weekend of dramatic developments between President Trump and some members of Congress, the House of Representatives is on track to proceed with a vote on the DOJ’s releasing all files and communications related to Jeffrey Epstein. Trump had been staunchly opposed to the move even as it picked up traction in the Republican Party. He publicly dissed longtime supporter Rep. Marjorie Taylor Greene of Florida over her push for the vote. On Sunday, Trump changed course, saying on social media that the House should take up the matter because “there is nothing to hide.” His post also said, “I DON’T CARE! All I do care about is that Republicans get BACK ON POINT.”—HVL

Real bets from last year’s Super Bowl: How many yards will Patrick Mahomes have? What songs will Kendrick Lamar perform? Will Travis Kelce’s mom show some skin? “Prop bets”—wagers on specific events within a game—can be silly or downright ridiculous, but, according to the Wall Street Journal, they’re a major driver of gambling revenue…along with being a major source of heartburn for sports leagues.

Easier to fix: Since prop bets often only involve one player—rather than a whole team—they’re easier to rig. For example:

• NBA players Terry Rozier and Jontay Porter are accused of leaving games early to make sure their stats stayed below a certain level, having tipped off bettors beforehand.
• Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz were recently indicted for telling bettors when they would throw certain pitches.

Leagues are trying to quell controversies and prevent similar scandals so fans don’t lose faith in the integrity of the sports and direct their eyeballs elsewhere. The NBA is considering changing how players report injuries, and the MLB is working to limit bets on individual pitches.

Harder to fix: But changes can be a tough sell to sportsbooks, which use prop bets to incentivize users to place higher-paying parlays, which include multiple bets (and more chances to lose).

Big picture: Americans bet close to $150 billion on sports last year and the sports betting industry netted a record $13.7 billion, according to the American Gaming Association.—BC

Nvidia reports earnings this week: All eyes will be trained on the green-and-white eye logo this Wednesday night, when CEO Jensen Huang offers an update on the world’s most valuable company and the broader AI industry in general. Nvidia shares are up about 1,000% over the past three years, and analysts anticipate that the chipmaker had another strong quarter. Because of its multitrillion-dollar market cap, if Nvidia doesn’t live up to the expectations on Wednesday, it could drag down the overall market (and your portfolio).

At long last, the September jobs report will be released on Thursday: The federal government is open again, and the data tap has been turned back on. The Bureau of Labor Statistics hasn’t released a monthly jobs report since September 5, so analysts are hungry for numbers, especially with the Federal Reserve recently signaling it’s on the fence about another rate cut in December. Additional backlogged reports (construction spending, inflation-adjusted earnings, etc.) will also start trickling out this week.

Wicked: For Good flies into theaters on Friday: Stage-to-screen adaptation Wicked: Part One proved popular with audiences when it debuted last year, netting $756 million globally, but can the second installment capture that same magic? Analysts think so, which would be welcome news for an industry that just suffered through its worst October box office since 1997. Wicked’s top competition this weekend will be Rental Family, starring Brendan Fraser, and Sisu: Road to Revenge.

Everything else:

• Season 12 of Gabby’s Dollhouse is on Netflix starting today.
• Home Depot reports earnings on Tuesday.
• Minutes from the Federal Reserve’s October meeting will be released on Wednesday.
• Lowe’s and Target report results on Wednesday.
• Walmart offers a peek into the state of the US consumer when it reports earnings on Thursday.
• The University of Michigan’s final consumer confidence reading for November will be out on Friday.
• The Davis Cup, the men’s World Cup of tennis, comes to a close this week, with the final taking place on Sunday.

When Charlie Javice sold her financial aid startup, Frank, to JPMorgan Chase for $175 million in 2021, she misrepresented how many customers it had, and was convicted on fraud charges this March.

But language in the deal contract for Frank—and a judge’s order in 2023—meant that JPMorgan had to pay for the legal fees accrued by Javice and one of her co-executives. That total is $142 million, which is almost as much as JPMorgan paid for Javice’s company in the first place.

JPMorgan is fighting to get out of paying the fees, but the tab keeps getting more expensive, with Javice facing other lawsuits and planning to appeal the fraud case. A lawyer for JPMorgan pointed out in court on Friday that some of the “legal fees” included luxury hotel charges, lawyers reporting 24-hour workdays, and a moisturizer to help smooth out skin (the odds of searching “cellulite butter” in Westlaw are low but never zero).

Attorneys for Javice and her co-executive maintain that their billing practices have been reasonable.—BC