LA City Council Approves Historic Tax Incentive

A $5 million grant program signals Hollywood's recognition of the vertical video revolution

As blockbuster budgets deflate and theatrical distribution diversifies, another transformation is underway. On January 28, 2026, the Los Angeles City Council voted unanimously 14-0 to approve a $5 million grant program for microdrama production—the short-form vertical videos, typically 1-2 minutes per episode, that have exploded in popularity on TikTok and YouTube Shorts.