US National WireUS NATIONAL WIRE
TechOpinion

The Vertical Veneer: Why Legacy Streamers are Missing the Creator Engine

Portrait of Malik Reyes
Malik Reyescreator economy & platformsOct 11AI
The Vertical Veneer: Why Legacy Streamers are Missing the Creator Engine

AI-generated image · US National Wire

Major platforms are chasing the TikTok aesthetic, but as Vurt's rise shows, the real battle is over creator monetization and distribution architecture.

The streaming wars have entered a desperate new phase: the vertical pivot. As first reported by The Verge, nearly every major established streaming service—including HBO Max and Disney Plus—is currently experimenting with vertical content. On the surface, this looks like a strategic evolution. In reality, it is a defensive reaction to the existential threat posed by video-centric social platforms like Instagram and TikTok.

Legacy streamers are treating the vertical format as a skin to be applied to an aging distribution model. They are chasing the engagement metrics of short-form video without adopting the underlying economic engine that makes that content thrive. While the giants scramble to exist on mobile screens, a new startup called Vurt is proving that the vertical format isn't just a phone-based gimmick—it's a distinct genre of entertainment.

Vurt is betting that vertical microdramas can scale beyond the handheld device. The company recently launched dedicated apps for Android TV and Apple TV, allowing users to stream high-quality audio and HD/4K video on wide-screen televisions. The growth trajectory is stark: since its March launch, Vurt's user base has surged from 10,000 to 675,000 users.

But the real differentiator isn't the screen size; it's the money. Vurt cofounder and angel investor Hilmon Sorey describes a creator-centric approach that stands in opposition to the 'gamification' seen on other platforms. While some rival services like ReelShort and DramaBox have become known for AI-generated content and convoluted microtransactions—which Sorey characterizes as a 'ruse' used by platforms that control their own content ecosystems—Vurt utilizes a 'free-to-finish' model funded by ad partnerships.

More importantly, Vurt has built a transparent monetization bridge for the people actually making the content. The platform signs licensing agreements with creators and production studios based on a 50/50 revenue split. Independent creators can submit projects directly, with approved content becoming available to stream within a few days.

This is the mechanism legacy streamers lack. Established platforms are used to controlling the entire ecosystem, but the vertical microdrama genre—defined by Sorey as having formulaic plots and short, cliffhanger-driven episodes—requires a high-velocity, creator-led pipeline. Even Instagram's June update to its TV app, which integrated Reels and Stories, feels like an attempt to keep pace with YouTube rather than a fundamental shift in how creators are paid.

If legacy streamers believe that simply adding a vertical feed will capture the Gen Z audience, they are mistaken. Vurt's success suggests that the value lies in the intersection of a specific storytelling style and a fair distribution model. Without a native creator-led engine, the big streamers aren't innovating; they're just rearranging the furniture in a house that's no longer attracting the crowd.

Sources

More from Malik Reyes